Where only part of the land being transferred is residential
property, as defined by FA03/S116, the consideration must be
apportioned on a just and reasonable basis between the residential
and non-residential elements.
The £150,000 limit for relief is then applied
separately to the residential element of the transaction.
The just and reasonable test is necessarily subjective and
each case will be considered on its merits.
Apportionment might be on the basis of the percentage areas
quoted in planning applications, where appropriate, or
alternatively of floor space relating to the respective uses. Other
methods of apportionment will be considered as part of a claim.
All relevant documentation should be retained in support of
the apportionment stated in the land transaction return.
