sec.40Land not used for non-exempt purpose—allowable lettings and work from home arrangements

sec.40 Land not used for non-exempt purpose—allowable lettings and work from home arrangements

The commissioner may not decide land is used for a non-exempt purpose if— the land is used as the home of a person (the principal resident ) for a financial year; and when a liability for land tax arises for the financial year, either or both of the following apply— there is a permitted number of allowable lettings for the land; a person who resides on the land carries out work on the land, other than excluded work, as an employee under an arrangement with the person’s employer; and the commissioner is satisfied the land is used only for the purposes mentioned in paragraphs (a) and (b) when a liability for land tax arises for the financial year. There is an allowable letting for the land if— a person (the occupant ) other than the principal resident has been given the right to occupy a residential area on the land (the leased area ) under a tenancy agreement; and the leased area is not more than 50% of the total floor area of all residential areas on the land; and the leased area is not a residential area that— is 1 of 3 or more flats in a building; and is not used for residential purposes by the principal resident; and the leased area is used by the occupant for residential purposes; and the occupant has not given the right to occupy any part of the area to another person under a tenancy agreement; and the rent payable for the leased area is not more than the market rent for the area. The permitted number , of allowable lettings for the land, means— 1 allowable letting; or 2 allowable lettings, if— at least 1 of the lettings is a family letting; and the total floor area of the leased areas for the lettings is not more than 50% of the total floor area of all residential areas on the land. An allowable letting is a family letting if the occupant is a member of the principal resident’s family. If there is a family letting for the land and the land is used for a non-exempt purpose, the family letting may be included in the use of the land as a home for the purpose of a partial exemption. See section 42 . In this section— excluded work means work involving use of the land for a purpose for which, or in a way in which, residential land is not ordinarily used. manufacturing work carried out in a shed office work carried out under a telecommuting arrangement in a home study (sec.40-ssec.1) The commissioner may not decide land is used for a non-exempt purpose if— the land is used as the home of a person (the principal resident ) for a financial year; and when a liability for land tax arises for the financial year, either or both of the following apply— there is a permitted number of allowable lettings for the land; a person who resides on the land carries out work on the land, other than excluded work, as an employee under an arrangement with the person’s employer; and the commissioner is satisfied the land is used only for the purposes mentioned in paragraphs (a) and (b) when a liability for land tax arises for the financial year. (sec.40-ssec.2) There is an allowable letting for the land if— a person (the occupant ) other than the principal resident has been given the right to occupy a residential area on the land (the leased area ) under a tenancy agreement; and the leased area is not more than 50% of the total floor area of all residential areas on the land; and the leased area is not a residential area that— is 1 of 3 or more flats in a building; and is not used for residential purposes by the principal resident; and the leased area is used by the occupant for residential purposes; and the occupant has not given the right to occupy any part of the area to another person under a tenancy agreement; and the rent payable for the leased area is not more than the market rent for the area. (sec.40-ssec.3) The permitted number , of allowable lettings for the land, means— 1 allowable letting; or 2 allowable lettings, if— at least 1 of the lettings is a family letting; and the total floor area of the leased areas for the lettings is not more than 50% of the total floor area of all residential areas on the land. (sec.40-ssec.4) An allowable letting is a family letting if the occupant is a member of the principal resident’s family. If there is a family letting for the land and the land is used for a non-exempt purpose, the family letting may be included in the use of the land as a home for the purpose of a partial exemption. See section 42 . (sec.40-ssec.5) In this section— excluded work means work involving use of the land for a purpose for which, or in a way in which, residential land is not ordinarily used. manufacturing work carried out in a shed office work carried out under a telecommuting arrangement in a home study