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My question is how to interpret Sch 2A para 16 when there is a partial subsale. Say Company A buys a shop with an upstairs flat in a single transaction. This would constitute a mixed-use purchase and non-residential rates apply. Subsequently Company A transfers the shop to Company B on or before completion. Consequently Company A can claim partial sub-sale relief in accordance with para 16(3). But will it apply residential or non-residential rates to the consideration for the retained element, given that this now relates to a purely residential element of an acquisition that was originally mixed-use?
Chantelle, it seems to me that Company A has purchased a mixed use property and then immediately sold part. Therefore it pays Table B rates even if it ends up with only the residential part.
Patrick
