Skip to main content

2.03 Additional Tax Imposed—calculation Of Tax If Transaction Includes Non-residential Property

In This Volume

2.03 If the subject matter of a taxable transaction to which section 2.02(3) applies includes land that is not residential property, the taxable amount for the purposes of section 2.02(4) is the taxable amount calculated as follows:

         
  VTA   x VRP
  VFS      

Where

  • VTA is the amount that, but for this section, would be the taxable amount under section 2.02(5) in respect of the taxable transaction;
  • VFS is the value of the fee simple interest in the land that is the subject matter of the taxable transaction, determined
  • (a) as though that land were being transferred in a taxable transaction referred to in paragraph (a)(i) of the definition of “taxable transaction” in section 1(1), and
  • (b) in accordance with paragraph (a) of the definition of “fair market value” in section 1(1);
  • VRP is, subject to the regulations, the value of the residential property included in the subject matter of the taxable transaction, determined
  • (a) as though that residential property were being transferred in a taxable transaction referred to in paragraph (a)(i) of the definition of “taxable transaction” in section 1(1), and
  • (b) in accordance with paragraph (a) of the definition of “fair market value” in section 1(1).

2016-27-3, effective August 2, 2016.