RPDT10210 - Key concepts: meaning of residential property development activities: build to let properties
This guidance considers the RPDT treatment of build to let properties, sometimes abbreviated to BTL or B2L.
Whether the development of property that is to be let to residents rather than sold to them by way of trade is within the scope of RPDT will depend on whether the development is undertaken by the landlord or by a developer who will sell the development to the landlord.
- Landowner X appoints builder A to construct an apartment block on land that X owns and on completion X offers the apartments to tenants on a short-term lease basis. X has constructed a capital asset to be used in its property income business. This is not an activity within the charge to RPDT. A is providing construction services and this activity is not within the charge.
- Property development company B builds an apartment block on land it owns as stock and sells the completed building to Y which will offer the apartments to tenants on a short-term lease basis. B is undertaking residential property development and is within the charge to RPDT: it is irrelevant that Y will be using the property in its property income business rather than the apartments being sold to individual owners.
The treatment of B is no different where it and Y are members of the same group.
B’s activity will not be within the charge to RPDT if the development is an “excluded building” of the kind described at RPDT10410.
RPDT01100 contains a general introduction to RPDT and a list of abbreviations used.
B’s activity will not be within the charge to RPDT if the developmerpnt is an “excluded building” of the kind described at RPDT10410.
RPDT01100 contains a general introduction to RPDT and a list of abbreviations used.