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This article discusses the ATED consequences arising where a building (including part of a building) that is a dwelling is demolished. Broadly, any question as to whether a person has an SDI in the dwelling, and any question as to the taxable value of such an SDI, is initially determined as if the dwelling had not been demolished (ie the demolition is effectively ignored)¹. The ongoing treatment then depends on whether or not the dwelling is replaced (see below under Demolition without replacement, Demolition and replacement—new dwellings and Demolition and replacement—other cases).

For these purposes, the demolition of a building is treated as occurring on the first day on which²:

1. Ìý

   •ÌýÌýÌýÌý the demolition has begun, and

2. Ìý

   •ÌýÌýÌýÌý as a result, the building is no longer suitable for use as a dwelling

In the following commentary, the demolished dwelling is referred to as the 'old dwelling' and the site of the old dwelling means the land on which that dwelling stood and that counted as part of the dwelling. References