Finance (Local Property Tax) Act 2012 section 6

Newly constructed residential properties

Section 6 provides an exemption from local property tax for newly constructed residential properties that remain unsold by the builder and meet certain conditions, for liability dates in the years 2013 to 2020.

• A newly built property held unsold by its builder or developer is exempt from LPT for the years 2013 to 2020.
• The property must not be occupied as a dwelling and must not have generated any taxable income (whether under income tax or corporation tax).
• The property must be classified as trading stock of the builder or developer who constructed it or had it constructed.
• All four conditions must be met simultaneously for the exemption to apply; if any condition ceases to be met, the property becomes a relevant residential property subject to LPT.