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Change 1
As published
111 Different interests held in the same dwelling: effect of reliefs etc
(1) References in section 110 to a person do not include—
(a) a public body, as defined in section 153,
(b) a body listed in section 154(2) (bodies established for national purposes).
(2) Subsections (1) to (4) of section 110 do not apply in relation to a single-dwelling interest if—
(a) the day in question is relievable with respect to that interest by virtue of section 150 (providers of social housing),
(b) by virtue of section 151 (charitable companies) the ownership condition is regarded as not met with respect to the interest on that day, or
(c) the taxable value of the interest on that day is taken to be zero by virtue of section 155 (dwelling conditionally exempt from inheritance tax).
(3) Subsection (4) applies where the separate interests (the “relevant interests”) that under section 110 (or that section and section 109) are treated as constituting, on a day, just one single-dwelling interest (“the combined interest”) include—
(a) a freehold or leasehold interest, and
(b) a leasehold interest (“the inferior interest”) granted out of that interest.
(4) If the inferior interest is the most inferior relevant interest, the combined interest, and the dwelling itself (where relevant), are regarded for the purposes of the relevant relieving provisions as being exploited, on the day mentioned in subsection (3), in the way the inferior interest is exploited on that day.
(5) If the inferior interest is an interest in part only (“the sub-let part”) of the land that is the subject-matter of the combined interest, subsection (4) has effect in relation to the combined interest only so far as that interest relates to the sub-let part.
(6) In this section “the relevant relieving provisions” means sections 132 to 150.
(7) The inferior interest counts as “the most inferior relevant interest” if no relevant interest (see subsection (3)) is a leasehold interest granted out of it.
(8) In this section the reference to a leasehold interest includes the interest of a lessee under an agreement for a lease.
(9) In the application of this section to Scotland—
(a) the reference to a freehold interest is to the interest of the owner;
(b) the reference to a leasehold interest is to a tenant's right over or interest in property subject to a lease;
(c) the reference to an agreement for lease includes missives of let.
Your change, as a redline
111 Different interests held in the same dwelling: effect of reliefs etc
(1) References in section 110 to a person do not include—
(a) a public body, as defined in section 153,
(b) a body listed in section 154(2) (bodies established for national purposes).
(2) Subsections (1) to (4) of section 110 do not apply in relation to a single-dwelling interest if—
(a) the day in question is relievable with respect to that interest by virtue of section 150 (providers of social housing),
(b) by virtue of section 151 (charitable companies) the ownership condition is regarded as not met with respect to the interest on that day, or
(c) the taxable value of the interest on that day is taken to be zero by virtue of section 155 (dwelling conditionally exempt from inheritance tax).
(3) Subsection (4) applies where the separate interests (the “relevant interests”) that under section 110 (or that section and section 109) are treated as constituting, on a day, just one single-dwelling interest (“the combined interest”) include—
(a) a freehold or leasehold interest, and
(b) a leasehold interest (“the inferior interest”) granted out of that interest.
(4) If the inferior interest is the most inferior relevant interest, the combined interest, and the dwelling itself (where relevant), are regarded for the purposes of the relevant relieving provisions as being exploited, on the day mentioned in subsection (3), in the way the inferior interest is exploited on that day.
(5) If the inferior interest is an interest in part only (“the sub-let part”) of the land that is the subject-matter of the combined interest, subsection (4) has effect in relation to the combined interest only so far as that interest relates to the sub-let part.
(6) In this section “the relevant relieving provisions” means sections 132 to 150.
(7) The inferior interest counts as “the most inferior relevant interest” if no relevant interest (see subsection (3)) is a leasehold interest granted out of it.
(8) In this section the reference to a leasehold interest includes the interest of a lessee under an agreement for a lease.
(9) In the application of this section to Scotland—
(a) the reference to a freehold interest is to the interest of the owner;
(b) the reference to a leasehold interest is to a tenant's right over or interest in property subject to a lease;
(c) the reference to an agreement for lease includes missives of let.
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