Client is buying some land (on two deeds from one purchaser, but essentially one bit of land) with planning to combine and build a single dwelling.
There is nothing on site at the moment, as the previous 3 dwellings fell into disrepair and have been demolished.
Client wont be building the one with planning, but is looking to split the deeds in a different ratio and do two.
I assume this is still "non residential" despite the planning as its just some land right now.
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Yes. There needs to be one or more dwellings on the land, or in course of construction on the land, at the relevant date.
There is an interpretation somewhere that construction must have commenced (ie breaking ground).
The statutory authority is at TCGA 1992 Schedule B1. The higher rate of tax applies to gains arising on the "disposal of a UK residential property interest" defined (broadly) at para 1 as land that has at any time during the relevant period of ownership "consisted of or included a dwelling". Para 4 notes that a building counts as a dwelling at any time it is used or suitable for use as a dwelling or "is in the process of being constructed or adapted for such use". On a plain reading of those words the construction of the dwelling should have started to bring land within the definition, as PNL notes.