If the current rules as to 'business real property' apply, it will be limited to any freehold or leasehold interest in property which is used wholly and exclusively in a business carried on by a person. It will often be the case that the whole of the property will not necessarily be able to be used wholly and exclusively in the business. The current rules do not permit any other use. The current restrictions on whom is carrying on the business create difficulties. The general concept is that of a business run by a person or by a company controlled by that person and close associates.
Control operates by reference to voting powers.
It permits trusts so long as the trustee is a company controlled by the person and close associates. It is not clear whether partnerships can utilise the exception. Back to back arrangements Back to back arrangements will be specifically prohibited. Prohibition on acquiring assets from members and their 'associates' The prohibition from acquiring assets from members and their 'relatives' will be extended to all associates. At present there is no restriction on acquisitions from family companies and family trusts so long as there is a corporate trustee or the trustee is someone who is not a relative.