D Ltd develops an office block that is completed 15 April 2010. On 1 June, D Ltd sells the property to E Ltd. E Ltd fits out the property and, on 1 September, transfers its staff from their previous premises to occupy the first two floors of the building. These two floors are considered occupied from this date.
The third floor is not used. On 15 October, E Ltd grants a four year, nine month lease to Mr X for the third floor. This is not considered occupation, as occupation requires that the property be occupied, and fully in use, by the tenant, and not merely used by the landlord in his business of letting property. On 1 February 2011, Mr X moves his staff in and, thereafter, operates his business from the premises. The third floor is not considered occupied until this date.