The reference to "use" in
SVM111210 of this chapter applies to
use by a company or another company within a group of which it is
part. It is unnecessary for the other company to have also been a
member of the group for a qualifying period. It is sufficient for
it to have been a member immediately before the transfer of value.
An asset will not be an excepted asset in a group situation
provided that the company using it was a member of the group at the
time of use and immediately before the transfer, and that the use
is in a company not excluded under s.111.
Where land or buildings are not used wholly or mainly for
business purposes and constitute 'excepted assets', s.112(4) gives
a measure of relief in respect of the value of any part of the
property which is used exclusively for the purposes of the
business.
In this context, exclusive use will include such use by
another member of the group, provided it satisfies the conditions
set out above under “Group Situations”. For example the
other member of the group could use the office.
Where there are any difficulties in apportioning value the
case should be referred to the Appeals Team.
This is a difficult area as there is a subjective element involved. You must not become involved in serious disputes on this topic without consulting the Appeals Team via your Team Leader.
| Additional Guidance: SVM150000 |
