UKPGA-2013-29 Finance Act 2013 UK

For the tax year 2013-14 the amount specified in section 35(1) of ITA 2007 (personal allowance for those born after 5 April 1948) is replaced with “ £9,440 ”.

Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply for that tax year.

For the tax year 2013-14 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £32,010 ”.

Accordingly section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.

Corporation tax is charged for the financial year 2014.

For that year the rate of corporation tax is—

In subsection (2) “ring fence profits” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).

For the financial year 2013 the small profits rate is—

For the purposes of Part 3 of CTA 2010, for that year—

In subsection (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).

For the financial year 2015 the main rate of corporation tax is 20% ....

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In relation to expenditure incurred during the period beginning with 1 January 2013 and ending with the specified date , section 51A of CAA 2001 (entitlement to annual investment allowance) has effect as if in subsection (5) for “£25,000” there were substituted “ £250,000 ”.

The specified date is —

Schedule 1 contains provision about chargeable periods which straddle 1 January 2013 ....

An accredited competitor who performs an Anniversary Games activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.

The following are Anniversary Games activities—

The non-residence condition is that—

Section 966 of ITA 2007 (deduction of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under subsection (1).

In this section—“accredited competitor” means a person to whom an accreditation card in the athletes' category has been issued by the company named UK Athletics Limited which was incorporated on 16 December 1998;“the Anniversary Games” means the British Athletics London Anniversary Games held at the Olympic Stadium in London in July 2013;“the games period” means the period—beginning with 21 July 2013, and ending with 29 July 2013;“income” means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 of ITTOIA 2005).

This section is treated as having come into force on 6 April 2013.

An accredited competitor who performs a Commonwealth Games activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.

The following are Commonwealth Games activities—

The non-residence condition is that—

Section 966 of ITA 2007 (deduction of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under subsection (1).

In this section—“accredited competitor” means a person to whom a Glasgow 2014 accreditation card in the athletes' category has been issued by the company named Glasgow 2014 Limited which was incorporated on 11 June 2007;“the games period” means the period—beginning with 4 March 2014, and ending with 3 September 2014;“the Glasgow Commonwealth Games” means the Commonwealth Games held in Scotland in 2014;“income” means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 of ITTOIA 2005).

After section 293A of ITEPA 2003 insert—

The amendment made by this section has effect in relation to payments made on or after 6 April 2013.

In Chapter 9 of Part 4 of ITEPA 2003 (exemptions from income tax for pension provision), in section 308 (exemption of contributions to registered pension scheme), at the end insert “ in respect of the employee ”.

The amendment made by this section has effect for the tax year 2013-14 and subsequent tax years.

In section 318B of ITEPA 2003 (childcare: meaning of “disabled” etc), in subsection (3)(a), after “allowance” insert “ or personal independence payment ”.

The amendment made by this section has effect for the tax year 2013-14 and subsequent tax years.

In section 677(1) of ITEPA 2003 (UK social security benefits wholly exempt from tax), in Part 1 of Table B (benefits payable under primary legislation), insert at the appropriate place—.

The amendment made by this section has effect for the tax year 2013-14 and subsequent tax years.

Chapter 4 of Part 8 of ITA 2007 (reliefs: annual payments and patent royalties) is amended in accordance with subsections (2) and (3).

In section 448 (relief for individuals), in subsection (1)(b) omit “or 903(5)” and “and patent royalties”.

In section 449 (relief for other persons), in subsection (1)(b) omit “or 903(6)” and “and patent royalties”.

Accordingly, that Act is amended as follows—

The amendments made by this section have effect in relation to payments made on or after 5 December 2012.

ITA 2007 is amended as follows.

In section 809K (sections 809L to 809Z6: introduction), in subsection (2)(e), for “809V” substitute “ 809UA ”.

Before section 809V (but after the italic heading) insert—

In section 809Z9(11) (taking proceeds etc offshore or investing them: modification of general provisions)—

The amendments made by this section have effect in relation to payments on account made in respect of the tax year 2012-13 and subsequent tax years.

In Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers under arrangements made by intermediaries), in section 49 (engagements to which Chapter applies), for subsection (1)(c) substitute—

This section has effect for the tax year 2013-14 and subsequent tax years.

Section 139 of ITEPA 2003 (car with CO 2 figure: the appropriate percentage) is amended in accordance with subsections (2) to (6).

In subsection (2), after “the relevant threshold” omit “for the year”.

For subsection (2)(a) substitute—.

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In subsection (3)—

In subsection (4)—

Section 140 of that Act (car without CO 2 figure: the appropriate percentage) is amended in accordance with subsections (8) to (11).

In the Table in subsection (2), for “35%” substitute “ 37% ”.

For subsection (3)(a) substitute—.

In subsection (3)(b), for “35%” substitute “ 37% ”.

Omit subsection (3A).

The amendments made by this section have effect for the tax year 2015-16 and subsequent tax years.

Section 105 of CTA 2010 (restriction on surrender of losses etc within section 99(1)(d) to (g)) is amended as follows.

In subsection (2), for “the surrendering company's gross profits of the surrender period” substitute “ the profit-related threshold ”.

In subsection (3), for “those gross profits” substitute “ the profit-related threshold ”.

After subsection (3) insert—

After subsection (5) insert—

The amendments made by this section have effect where the surrender period of the surrendering company ends on or after 20 March 2013, but subject to the following.

For the purposes of section 105(3A)(b) and (3B)(b) of CTA 2010, chargeable profits do not include—

Subsection (9) applies where—falls partly before and partly on or after 20 March 2013.

For the purposes of section 105 of CTA 2010, the chargeable profits of the CFC for that period, so far as apportioned to the surrendering company as mentioned in subsection (3A)(b) or (3B)(b) of that section (as the case requires), are to be further apportioned on a just and reasonable basis between the two parts of the period, and the chargeable profits referred to in subsection (3A)(b) or (3B)(b) are not to include the chargeable profits apportioned to the part ending before 20 March 2013.

In section 156 of CTA 2010 (definition of “arrangements” for purposes of sections 154 to 155B, etc)—

In sections 154(3) and 155(3) of that Act (arrangements for transfers), for “154A” substitute “ 155A ”.

In section 188 of that Act (other definitions for Part 5), in subsection (1), after “ “company”” insert “ (except in section 156(2A) ”.

The amendments made by this section have effect in relation to accounting periods ending on or after 1 April 2013.

For section 676 of CTA 2010 (disallowance of trading losses where company reconstruction without a change of ownership) substitute—

The amendment made by this section has effect in relation to changes in ownership that occur on or after 20 March 2013.

Schedule 16 contains provision about television production.

Schedule 17 contains provision about video games development.

Schedule 18 contains consequential amendments.

In Chapter 8 of Part 22 of CTA 2010 (exemptions), after section 987 insert—

The amendment made by this section is treated as having come into force on 16 January 2012, but, in relation to any time before 22 November 2012, section 987A of CTA 2010 has effect as if paragraph (a) were omitted.

Chapter 6 of Part 12 of CTA 2009 (relief for employee share acquisitions: relationship between relief under Part 12 and other reliefs) is amended as follows.

For section 1038 substitute—

After section 1038 insert—

For the purposes of the following subsections—“pre-20 March 2013 relevant accounting period” means an accounting period which begins before 20 March 2013 but ends on or after that date, and“relevant accounting period” means an accounting period which ends on or after 20 March 2013.

The amendment made by subsection (2) above has effect for the purpose of disallowing deductions for relevant accounting periods. For this purpose, it does not matter if the acquisition of shares which gives rise, or would give rise, to the relief under Part 12 of CTA 2009 occurs before a company's first relevant accounting period.

But the amendment made by subsection (2) above has no effect for the purpose of disallowing a deduction for a pre-20 March 2013 relevant accounting period where the acquisition of shares which gives rise, or would give rise, to the relief under Part 12 of CTA 2009 occurs before 20 March 2013.

The amendment made by subsection (3) above has effect for the purpose of disallowing deductions for relevant accounting periods. For this purpose, it does not matter if the option is obtained before a company's first relevant accounting period.

But the amendment made by subsection (3) above has no effect for the purpose of disallowing a deduction for a pre-20 March 2013 relevant accounting period where—

Chapter 7 of Part 7 of CTA 2009 (chargeable gains arising in relation to derivative contracts) is amended as follows.

In section 643 (contracts relating to land or certain tangible movable property)—

In section 650 (property based total return swaps)—

In section 659 (meaning of “relevant credits” and “relevant debits”), after subsection (4) insert—

The amendments made by this section have effect in relation to accounting periods beginning on or after 5 December 2012.

But, for the purposes of subsection (5), an accounting period beginning before, and ending on or after, 5 December 2012 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.

In section 1158(2) of CTA 2010 (condition A for a company to be an “investment trust”), for “the business of the company consists of” substitute “ all, or substantially all, of the business of the company is ”.

The amendment made by this section has effect in relation to accounting periods beginning on or after 1 January 2012.

Part 2 of Schedule 18 to FA 2011 (lifetime allowance charge: commencement and transitional provision relating to changes made for the tax year 2012-13 and onwards) is amended as follows.

In paragraph 14—

After paragraph 14 insert—

The amendments made by subsection (2)(b) and (c) are treated as having come into force on 6 April 2012.

The Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011 (S.I. 2011/1752) are to continue to have effect and, so far as they were made under paragraph 14(2) and (15) of Schedule 18 to FA 2011, are to be treated as if they were made under paragraphs 16 and 17(1) of that Schedule (as inserted by subsection (3) above).

Section 218 of FA 2004 (standard lifetime allowance etc) is amended as follows.

For subsection (2) substitute—

In subsection (3) for “the tax year 2012-13” substitute “ the tax year 2014-15 ”.

The amendments made by subsections (2) and (3) have effect for the tax year 2014-15 and subsequent tax years.

Schedule 22 contains transitional provision etc.

Section 228 of FA 2004 (annual allowance) is amended as follows.

For subsection (1) substitute—

In subsection (2) for “2011-12” substitute “ 2014-15 ”.

The amendments made by this section have effect for the tax year 2014-15 and subsequent tax years.

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In Schedule 16 to FA 2011 (benefits under pension schemes)—

The amendments made by subsections (1) and (2) have effect in relation to drawdown pension years beginning on or after 26 March 2013.

The amendments made by subsection (3)(a) and (c) are treated as having come into force on 26 March 2013.

The amendments made by subsection (3)(b) and (d) have effect in relation to transfers within paragraph 90(5) or 98(5) of Schedule 16 to FA 2011 occurring during a drawdown pension year ending on or after 25 March 2013.

FA 2004 is amended as follows.

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In paragraph 1 of Schedule 29 (pension commencement lump sums), in sub-paragraph (4)(a), omit the words from “at a time” to “65”.

In consequence of subsection (3), paragraph 21 of Schedule 23 to the FA 2006 is repealed.

The amendments made by this section have effect for the tax year 2013-14 and subsequent tax years.

FA 2004 is amended as follows.

In section 188 (relief for contributions), in subsection (3) (contributions excluded from relief), omit paragraph (c) and the word “and” immediately preceding that paragraph.

In that section, omit subsection (6) (which treats certain amounts recovered by individual's employer as contributions paid by individual).

Omit section 190(5) (certain reliefs not to count towards annual limit for relief).

Omit section 196(5) (references to contributions to include references to minimum payments when determining relief for employers).

Omit section 202 (minimum contributions under pensions legislation).

Omit section 233(2) (references to contributions not to include references to minimum payments when determining pension input amount).

In paragraph 5 of Schedule 29 (short service refund lump sum), after sub-paragraph (2) insert—

Omit paragraph 14(2) of Schedule 36 (which excludes minimum payments from being relevant contributions for the purposes of enhanced protection from lifetime allowance charge).

Subsections (1), (3) to (5) and (7) to (9) come into force on 6 April 2013.

Subsection (2) comes into force on 6 April 2015.

Subsection (6) comes into force on 6 April 2016, except that the repeal of section 202(5) of FA 2004 comes into force on such day as the Treasury may appoint by order made by statutory instrument.

In section 150(8) of FA 2004 (meaning of “recognised overseas pension scheme”), for the words from “which” to the end substitute “ which satisfies any requirements prescribed for the purposes of this subsection by regulations made by the Commissioners for Her Majesty's Revenue and Customs. ”

Section 169 of that Act (pension schemes: recognised transfers) is amended as follows.

In subsection (2)(c), for “any prescribed information requirements imposed on the scheme manager” substitute “ any requirements imposed under subsection (4) ”.

For subsection (4) substitute—

In subsection (5)—

For subsection (6) substitute—

After subsection (7) insert—

In section 280(1) of that Act (abbreviations), insert at the appropriate place—.

Part 6 of Schedule 36 to FA 2008 (information and inspection powers: special cases) is amended as follows.

In paragraph 34B (registered pension schemes etc)—

In paragraph 34C (registered pension schemes etc: interpretation), insert at the appropriate places—;

In paragraphs 34B and 34C of Schedule 36 to FA 2008, references to a former QROPS include a scheme that ceased to be a QROPS before this Act was passed.

ITA 2007 is amended as follows.

In section 29 (tax reductions: supplementary), in subsection (4B), after the entry for Chapter 1 of Part 5 insert— “ Chapter 1 of Part 5A (SEIS relief), ”.

In section 32 (liability not dealt with in the calculation), after the entry for section 235 insert— “ under section 257G (withdrawal or reduction of SEIS relief), ”.

In section 257DG (the control and independence requirement), for subsection (2) substitute—

The amendments made by subsections (2) and (3) have effect for the tax year 2013-14 and subsequent tax years.

The amendment made by subsection (4) has effect in relation to shares issued on or after 6 April 2013.

Schedule 5BB to TCGA 1992 (seed enterprise investment scheme: re-investment) is amended as follows.

In paragraph 1 (SEIS re-investment relief)—

In paragraph 2 (restrictions on relief under paragraph 1)—

In paragraph 5 (removal or reduction of relief) in sub-paragraph (2) for “2012-13” substitute “ in which the shares were issued ”.

Accordingly, in section 150G of TCGA (which introduces Schedule 5BB), for “tax year 2012-13” substitute “ tax years 2012-13 and 2013-14 ”.

A claim for relief under this section (“disincorporation relief”) may be made where—

As to the consequences of a claim for disincorporation relief being made, see—sections 162B and 162C of TCGA 1992; section 849A of CTA 2009.

In this section and sections 59 to 61 “the business transfer date”, in relation to the transfer of a business, is the date on which the business is transferred. For this purpose, where the business is transferred under a contract—

This section and sections 59 and 60 apply to a transfer of a business with a business transfer date of 1 April 2013 or a later date.

The transfer of a business from a company to some or all of the shareholders of the company is a qualifying business transfer for the purposes of section 58 if conditions A to E are met.

Condition A is that the business is transferred as a going concern.

Condition B is that the business is transferred together with all of the assets of the business, or together with all of those assets other than cash.

Condition C is that the total market value of the qualifying assets of the business included in the transfer does not exceed £100,000.

Condition D is that all of the shareholders to whom the business is transferred are individuals.

Condition E is that each of those shareholders held shares in the company throughout the period of 12 months ending with the business transfer date.

For the purposes of condition D, the reference to individuals includes an individual acting as a member of a partnership, but does not include an individual acting as a member of a limited liability partnership.

Section 60 of TCGA 1992 (nominees and bare trustees) applies for the purposes of this section as it applies for the purposes of that Act.

In this section “market value”, in relation to an asset, means the price which the asset might reasonably be expected to fetch on a sale in the open market.

In this section a “qualifying asset” means—

A claim for disincorporation relief under section 58—

Any claim for disincorporation relief must be made within the period of 2 years beginning with the business transfer date.

In Part 5 of TCGA 1992 (transfer of business assets), in Chapter 1 (general provisions), after section 162A insert—

In Part 8 of CTA 2009 (intangible fixed assets), Chapter 13 (transactions between related parties) is amended as follows.

In section 844 (overview of Chapter), in subsection (2) for “849” substitute “ 849A ”.

In section 845 (transfer between company and related party treated as at market value), in subsection (4) (exceptions to basic rule)—

After section 849 insert—

The amendments made by this section have effect in relation to a transfer of a business with a business transfer date of 1 April 2013 or a later date.

TCGA 1992 is amended as follows.

In subsection (4) of section 13 (members to whom rule for attributing gains to members of non-resident companies does not apply), for “one tenth” substitute “ one quarter ”.

In subsection (5) of that section (cases where rule for attributing gains to members of non-resident companies does not apply), after the “or” at the end of paragraph (b) insert—.

After section 13 insert—

The amendments made by this section have effect in relation to disposals made on or after 6 April 2012.

But, in the case of a disposal made on or after that date but before 6 April 2013, a person to whom a part of a chargeable gain or allowable loss would (but for the amendments made by this section) have accrued on the disposal may make an election in writing for section 13 of TCGA 1992 to apply in relation to the disposal without those amendments.

An election under subsection (6) in respect of a disposal must be made—

In section 169D of TCGA 1992 (gifts to settlor-interested settlements etc: exceptions to sections 169B and 169C), in subsection (1), after “elected” insert “ , or could have elected, ”.

The amendment made by this section has effect for the tax year 2012-13 and subsequent tax years.

Chapter 4 of Part 2 of CTA 2010 (currency) is amended as follows.

In section 5 (basic rule: sterling to be used), after subsection (2) insert—

After section 9B insert—

The amendments made by this section come into force in accordance with provision made by the Treasury by order.

In section 45D of CAA 2001 (first year qualifying expenditure on cars with low carbon dioxide emissions)—

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In section 104AA of that Act (special rate expenditure: meaning of “main rate car”), in subsection (4) for “160” substitute “130”.

Accordingly, in section 77 of FA 2008 omit—

The amendments made by subsections (1)(b), (2) and (4)(b) have effect in relation to expenditure incurred on or after 1 April 2013.

The amendment made by subsection (3) has effect in relation to expenditure incurred on or after the relevant date.

But in relation to expenditure incurred on the hiring of a car—section 49(1A) of ITTOIA 2005 and section 57(1A) of CTA 2009 apply on or after the relevant date as if the amendment made by subsection (3) did not have effect.

“The relevant date” means—

In section 46(2) of CAA 2001 (general exclusions from first-year allowance), omit—and the italicised headings preceding them.

The amendments made by this section have effect for expenditure incurred on or after 1 April 2013.

In section 268D of CAA 2001 (hire cars for disabled persons), in subsection (2), after paragraph (a) insert—.

The amendment made by this section has effect in relation to expenditure incurred on or after 1 April 2013.

Section 538 of CAA 2001 (contribution allowances: plant and machinery) is amended as follows.

In subsection (1), omit the “and” at the end of paragraph (a) and after that paragraph insert—.

In subsection (2)—

The amendments made by this section have effect in relation to expenditure pooled, and to claims made, on or after 29 May 2013 (“the commencement date”).

In relation to such expenditure and claims, when determining for the purposes of section 536(3)(a) of CAA 2001 whether an allowance can be made under Chapter 2 of Part 11 of that Act, the amendments made by this section are to be treated as always having had effect.

Nothing in this section applies to a claim by a person for a contribution allowance under Part 2 of CAA 2001 in respect of a contribution made before the commencement date.

Subsection (8) applies if—

Part 2 of CAA 2001 has effect as if an event had occurred as a result of which the person is required to bring into account as a disposal receipt under that Part, for the chargeable period in which the commencement date falls, a disposal value of an amount equal to E-A.

For the purposes of subsection (8)—E is the amount of the relevant expenditure, and A is the total amount of writing-down allowances made in respect of the relevant expenditure.

For the purpose of calculating A, the total amount of writing-down allowances made in respect of expenditure on an item of plant or machinery is to be determined as if that item were the only item of plant or machinery in relation to which Chapter 5 of Part 2 of CAA 2001 had effect.

The event mentioned in subsection (8) is not to be regarded as a disposal event for the purposes of section 60(3) of CAA 2001.

Section 596 of ITA 2007 (deemed manufactured payments: stock lending arrangements) is amended in accordance with subsections (2) and (3).

For subsection (1) substitute—

In subsection (2), for paragraph (a) substitute—.

Section 812 of CTA 2010 (deemed manufactured payments: stock lending arrangements) is amended in accordance with subsections (5) to (7).

For subsection (1) substitute—

In subsection (2), for paragraph (a) substitute—.

After subsection (6) insert—

The amendments made by this section have effect in relation to cases in which a dividend or interest is paid, or is treated as paid, on or after 5 December 2012.

In section 31 of ITTOIA 2005 (trade profits: relationship between rules prohibiting and allowing deductions)—

In section 274 of ITTOIA 2005 (property businesses: relationship between rules prohibiting and allowing deductions)—

In section 51 of CTA 2009 (trade profits: relationship between rules prohibiting and allowing deductions)—

In section 214 of CTA 2009 (property businesses: relationship between rules prohibiting and allowing deductions)—

The amendments made by this section have effect in relation to deductions in respect of amounts which arise directly or indirectly in consequence of, or otherwise in connection with—

But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.

“An unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of a right (whether under the contract or otherwise).

There are to be paid out of money provided by Parliament any sums which a Minister of the Crown is liable to pay under a decommissioning relief agreement.

A “decommissioning relief agreement” is an agreement which—

“Qualifying company” means—

For the purposes of subsection (2)(b) the amount of tax relief in respect of any decommissioning expenditure is to be determined in accordance with the agreement; and in making such a determination tax relief in respect of expenditure incurred by the qualifying company that is not decommissioning expenditure may, in such circumstances as are specified in the agreement, be treated as if it were tax relief in respect of decommissioning expenditure.

No payment is to be made to a company under a decommissioning relief agreement by reference to the energy (oil and gas) profits levy.

Every decommissioning relief agreement (whenever entered into) is to be read accordingly.

A payment made to a company under a decommissioning relief agreement is not to be regarded as income or a gain of the company for any purpose of the Tax Acts.

Section 18(1) of CRCA 2005 (restriction on disclosure by Revenue and Customs officials) does not prevent—

In this section—“company” has the meaning given by section 1121 of CTA 2010,“cross-boundary field” has the meaning given by section 10(9) of the Petroleum Act 1998,“decommissioning expenditure” has the meaning given by section 81,“Minister of the Crown” includes the Treasury,“ring fence trade” has the same meaning as in Part 8 of CTA 2010 (see section 277 of that Act),“the UK sector of a cross-boundary field” means that part of a cross-boundary field lying within the UK marine area (as defined by section 42 of the Marine and Coastal Access Act 2009), and“unitisation agreement” has the meaning given by paragraph 1(2) of Schedule 17 to FA 1980.

Subsections (8) to (9) of section 30 of the Petroleum Act 1998 (which specifies when one body corporate is associated with another) apply for the purposes of this section as they apply for the purposes of that section.

In section 80 “decommissioning expenditure” means expenditure incurred in connection with—

It is immaterial for the purposes of subsection (1)(b) whether the plant or machinery is reused, is demolished or is partly reused and partly demolished.

It is immaterial for the purposes of subsection (1)(c) and (d) whether the plant or machinery is in fact reused.

In subsection (1)(e) “restoration” includes landscaping.

The Treasury may by order amend this section.

An order under subsection (5) may include transitional provision and savings.

The power to make an order under subsection (5) is exercisable by statutory instrument.

A statutory instrument containing an order under subsection (5) is subject to annulment in pursuance of a resolution of the House of Commons.

For each financial year the Treasury must prepare a report containing the information in subsection (2).

The information is—

The report for a financial year must be laid before the House of Commons as soon as is reasonably practicable after the end of that year.

In this section “decommissioning relief agreement” has the same meaning as in section 80.

This section has effect in relation to financial years ending on or after 31 March 2014.

This section applies where a sum is payable to a company (“the claimant”) under a decommissioning relief agreement.

Subsection (3) applies where the reference amount is calculated by reference to what the claimant's assessable profit in any chargeable period would be if any expenditure incurred by it were used to reduce its profit in a particular way (rather than in any way that it has in fact been used).

For the purposes of petroleum revenue tax—

Subsection (5) applies where the reference amount is calculated by reference to what any other company's assessable profit in any chargeable period would be if any expenditure incurred by the claimant—

For the purposes of petroleum revenue tax—

In this section—“assessable profit” and “chargeable period” have the same meaning as in Part 1 of OTA 1975,“company” has the meaning given by section 1121 of CTA 2010,“decommissioning relief agreement” has the same meaning as in section 80, and“the reference amount” means the reference amount (within the meaning of that section) that relates to the sum mentioned in subsection (1).

This section applies where—

Paragraph 15 of Schedule 17 to FA 1980 does not apply in relation to any allowable loss accruing to the other company from that oil field.

Any allowable unrelievable field loss (within the meaning of section 6 of OTA 1975) that—is not to be regarded as arising.

Nothing in this section affects the operation of section 83(3) or (5).

In this section—“abandonment programme” means an abandonment programme approved under Part 4 of the Petroleum Act 1998 (including such a programme as revised),“company” has the meaning given by section 1121 of CTA 2010,“decommissioning expenditure” has the same meaning as in section 80,“decommissioning relief agreement” has the same meaning as in that section,“oil field” has the same meaning as in OTA 1975,“relevant agreement” has the meaning given by section 104(5)(a) of FA 1991, and“unrelieved portion”, in relation to an allowable loss, is to be read in accordance with section 6 of OTA 1975.

This section applies where—

If, in the absence of section 83, the assessable profit accruing to the affected company from an oil field in that chargeable period would be reduced under section 8(1) of OTA 1975, the amount of the oil allowance for the oil field utilised by the affected company in that chargeable period for the purposes of section 8 of that Act is to be determined as if section 83 did not apply.

In this section—“abandonment programme” means an abandonment programme approved under Part 4 of the Petroleum Act 1998 (including such a programme as revised),“company” has the meaning given by section 1121 of CTA 2010,“decommissioning expenditure” has the same meaning as in section 80,“decommissioning relief agreement” has the same meaning as in that section,“oil field” has the same meaning as in OTA 1975, and“relevant agreement” has the meaning given by section 104(5)(a) of FA 1991.

In Chapter 3 of Part 3 of IHTA 1984 (settled property: settlements without interests in possession etc), section 58 (relevant property) is amended as follows.

In subsection (1), omit the “and” at the end of paragraph (ea) and before paragraph (f) insert—.

At the end insert—

This section is treated as having come into force on 20 March 1993.

For the purposes of section 58 of IHTA 1984—

There is to be no charge to tax under section 65 of IHTA 1984 if the only reason for such a charge would be that property ceases to be relevant property by virtue of the coming into force of this section.

In Part 8 of CTA 2010 (oil activities), after section 287 insert—

In section 464 of CTA 2009 (priority of Part 5 for corporation tax purposes), in subsection (3)(e), for “and 287” substitute “ to 287A ”.

The amendments made by this section have effect in relation to accounting periods beginning on or after the day on which this Act is passed.

Section 330B of CTA 2010 (decommissioning expenditure taken into account for PRT purposes) is amended as follows.

In subsection (1), omit the “and” at the end of paragraph (a) and after paragraph (b) insert

For subsection (2) substitute—

In subsection (3)—

In subsection (4), for “subsection (1)” substitute “ subsection (1)(a) ”.

In subsection (7)—

The amendments made by this section have effect in relation to expenditure incurred in connection with decommissioning carried out on or after the day on which this Act is passed.

Part 1 of Schedule 31 contains provision about expenditure on and under abandonment guarantees and abandonment expenditure.

Part 2 of Schedule 31 contains provision about calculating the profits of a ring fence trade carried on by a person who incurs expenditure on meeting another person's decommissioning liabilities.

Section 163 of CAA 2001 (meaning of “general decommissioning expenditure”) is amended as follows.

In subsection (1)—

After subsection (3A) insert—

In subsection (5)(a), for “ “oil field” has” substitute “ “oil” and “oil field” have”.

The amendments made by this section have effect in relation to expenditure incurred on decommissioning carried out on or after the day on which this Act is passed.

In section 164 of CAA 2001 (general decommissioning expenditure incurred before cessation of ring fence trade), after subsection (1B) insert—

The amendment made by this section has effect in relation to expenditure incurred on decommissioning carried out on or after the day on which this Act is passed.

Part 5 of CAA 2001 (mineral extraction allowances) is amended as follows.

In section 395 (qualifying expenditure), in subsection (1)(d), omit “post-trading”.

In section 403 (qualifying expenditure on acquiring a mineral asset), after subsection (2) insert—

In section 416 (expenditure on restoration within 3 years of ceasing to trade)—

In Chapter 5, after section 416 insert—

In section 416B (first-year qualifying expenditure), in subsection (2), at the end insert “ (within the meaning of section 403) ”.

Part 4 of CTA 2010 (loss relief) is amended as follows.

In section 40 (ring fence trades: extension of periods for which relief may be given), in subsection (1)(b), for “403” substitute “ by virtue of section 416ZA ”.

In section 43 (claim period in case of ring fence or mineral extraction trades), in subsection (1)(b)—

The amendments made by this section have effect in relation to expenditure incurred on restoration carried out on or after the day on which this Act is passed.

A tax (called “annual tax on enveloped dwellings”) is to be charged in accordance with this Part.

Tax is charged in respect of a chargeable interest if on one or more days in a chargeable period—

The tax is charged for the chargeable period concerned.

A company meets the ownership condition with respect to a single-dwelling interest on any day on which the company is entitled to the interest (otherwise than as a member of a partnership or for the purposes of a collective investment scheme).

A partnership meets the ownership condition with respect to a single-dwelling interest on any day on which a member of the partnership that is a company is entitled to the interest (as a member of the partnership).

A collective investment scheme meets the ownership condition with respect to a single-dwelling interest on any day on which the interest is held for the purposes of the scheme.

If a company is jointly entitled to a chargeable interest (as a member of a partnership or otherwise), then regardless of whether the company is entitled as a joint tenant or tenant in common (or, in Scotland, as a joint owner or owner in common) the ownership condition is regarded as met in relation to the whole chargeable interest.

The chargeable periods are—

See also section 95.

In this Part “entitled” means beneficially entitled—This is subject to subsection (2).

References in this Part to entitlement to a single-dwelling interest (or any other chargeable interest) do not include—

Subsection (1)(b) does not apply where the contrary is specified.

In this section “settlement” has the same meaning as in Part 4 of FA 2003 (see paragraph 1 of Schedule 16 to that Act).

The chargeable person is liable to pay tax charged under this Part.

“The chargeable person” means—

In relation to tax charged by virtue of section 94(6) “the chargeable person” means—

The liability of the responsible partners to pay tax charged on them under this Part is joint and several.

References in this section to “the responsible partners” are to all the persons who are members of the partnership concerned on the first day in the chargeable period on which the partnership meets the ownership condition with respect to the single-dwelling interest.

Tax charged under this Part is said to be “charged on” the chargeable person (and that person is said to be “chargeable to” the tax).

Subsection (2) applies if—

The company and the other person or persons are jointly and severally liable for the tax charged for that period with respect to the interest (whether or not those other persons are also within the charge with respect to the interest on the day in question).

Subsection (4) applies if—

If, on the first day in the chargeable period on which the responsible partners are within the charge a person (“P”) who is not one of the responsible partners is jointly entitled to the chargeable interest, P and the responsible partners are jointly and severally liable for the tax charged for the period with respect to the interest (whether or not P is also within the charge with respect to the interest on the day in question).

Subsection (2) applies where tax is charged for a chargeable period with respect to a single-dwelling interest by virtue of section 94(6).

The persons who are major participants in the scheme on the first day of the chargeable period on which the chargeable person is within the charge with respect to the interest are jointly and severally liable with the chargeable person for the tax charged.

Subsection (2) does not permit the recovery from a major participant of an amount exceeding the market value of the participant's holding in the scheme.

The reference in subsection (3) to a participant's holding in a collective investment scheme is to the interests or rights by virtue of which the participant takes part in the scheme.

Tax chargeable by virtue of section 94(6) may be recovered from the depositary (if any) of a collective investment scheme, but only up to the amount or value of any money or other property subject to the scheme that has been entrusted to the depositary for safekeeping.

The depositary—

In this section—

For the purposes of this Part “market value” is to be determined as for the purposes of TCGA 1992 (see, particularly, section 272 of that Act).

The amount of tax charged for a chargeable period with respect to a single-dwelling interest is stated in subsection (2) or (3).

If the chargeable person is within the charge with respect to the single-dwelling interest on the first day of the chargeable period, the amount of tax charged is equal to the annual chargeable amount.

Otherwise, the amount of tax charged is equal to the relevant fraction of the annual chargeable amount.

The annual chargeable amount for a single-dwelling interest and a chargeable period is determined in accordance with the following table, by reference to the taxable value of the interest on the relevant day.

The “relevant day” is—

The relevant fraction is—N Y where—“N” is the number of days from (and including) the relevant day to the end of the chargeable period;“Y” is the number of days in the chargeable period.

See also—

Where tax is charged for a chargeable period with respect to a single-dwelling interest, the chargeable person may claim relief before the end of the chargeable period if—

Relief under this section is called “interim relief”, and must be claimed—

Where interim relief is claimed under this section, section 163(1) (payment of tax by filing date for annual tax on enveloped dwellings return) has effect as if the amount of tax charged with respect to the single-dwelling interest were the sum of amounts A and B.

Amount A is the total of all the daily amounts for days in the pre-claim period on which the chargeable person is within the charge with respect to the single-dwelling interest, other than days that are relievable with respect to the single-dwelling interest.

Amount B is zero if—

Otherwise, amount B is the appropriate fraction of the annual chargeable amount for the single-dwelling interest. For this purpose the annual chargeable amount is determined (under section 99(4)) on the basis that the day of the claim is the relevant day.

In subsection (6) “appropriate fraction” means—X Y where—“X” is the number of days in the period beginning with the day of the claim and ending at the end of the chargeable period, and“Y” is the number of days in the chargeable period.

In this section—“day of the claim” means the day on which the return mentioned in subsection (2)(a), or notice of the amendment made under subsection (2)(b), is delivered to HMRC;“pre-claim period” means the period—beginning with the first day in the chargeable period mentioned in subsection (1) on which the chargeable person is within the charge with respect to the single-dwelling interest, and ending with the day before the day of the claim.

See sections 105 and 106 for provision about the adjustment of the amount of tax charged.

If the consumer prices index for September in 2013 or any later year (“the later year”) is higher than it was for the previous September, section 99(4) applies in relation to chargeable periods beginning on or after 1 April in the year after the later year with the following amendments.

For each of the annual chargeable amounts stated in the table in section 99(4) (as it applies in relation to chargeable periods beginning in the previous 12 months) there is substituted the indexed amount.

“The indexed amount” is found by—

In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.

The Treasury must, before 1 April 2014 and before each subsequent 1 April, make an order stating the amounts that by virtue of this section are to be the annual chargeable amounts for chargeable periods beginning on or after that date.

The taxable value of a single-dwelling interest on any day (“the relevant day”) is equal to its market value at the end of the latest day that—

Each of the following is a valuation date in the case of any single-dwelling interest—

But a day that is a valuation date only because of subsection (2)(b) (a “5-yearly valuation date”) is to be treated as if it were not a valuation date for the purpose of determining the taxable value of a single-dwelling interest on any day in the chargeable period beginning with that 5-yearly valuation date.

The following are also valuation dates in the case of any single-dwelling interest to which a company is entitled on the relevant day (otherwise than as a member of a partnership)—

The following are also valuation dates in the case of any single-dwelling interest to which a company is entitled on the relevant day as a member of a partnership—

The following are also valuation dates in the case of any single-dwelling interest that is on the relevant day held for the purposes of a collective investment scheme—

In this section references to a disposal of part of a single-dwelling interest include the grant of a chargeable interest out of the single-dwelling interest.

The grant of an option does not count as the grant of a chargeable interest for the purposes of subsection (6).

For the purposes of section 102—

If the acquisition mentioned in subsection (1)(a) is a transaction between persons who are connected with each other or not acting at arm's length, subsection (1)(a) applies as if the reference to the chargeable consideration for the acquisition were to the market value of the chargeable interest acquired.

If the disposal mentioned in subsection (1)(b) is a transaction between persons who are connected with each other or not acting at arm's length, subsection (1)(b) applies as if the reference to the chargeable consideration for the acquisition in question were to the market value of the part of the single-dwelling interest disposed of.

The chargeable consideration for the acquisition mentioned in subsection (1)(a) is taken to include the chargeable consideration for any linked acquisition of a chargeable interest in or over the same dwelling.

The chargeable consideration for the transaction mentioned in subsection (1)(b) is taken to include the chargeable consideration for any linked disposal of part (but not the whole) of the single-dwelling interest concerned.

For the purposes of subsection (2) the market value of the chargeable interest acquired is taken to be the sum of the market values of that chargeable interest and any chargeable interest in or over the same dwelling that is acquired in a linked transaction.

For the purposes of subsection (3) the market value of the part of the single-dwelling interest disposed of is taken to be the sum of the market values of that chargeable interest and any chargeable interest in or over the same dwelling that is disposed of in a linked transaction.

For the purposes of this section two or more transactions are “linked” if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.

In this section “chargeable consideration”, “purchaser” and “vendor” have the same meaning as in Part 4 of FA 2003.

In this section references to a disposal of part of a single-dwelling interest include the grant of a chargeable interest out of the single-dwelling interest.

In relation to a person on whom tax is charged for a chargeable period with respect to a single-dwelling interest, the “adjusted chargeable amount” is the total of the daily amounts for all the days in the period on which the chargeable person is within the charge with respect to the interest.

The daily amount for any such day (“the actual day”) is—1 Y×A where—“Y” is the number of days in the chargeable period;“A” is the annual chargeable amount for the single-dwelling interest, determined (under section 99(4)) on the basis that the actual day is the relevant day.

Where tax is charged for a chargeable period with respect to a single-dwelling interest and the adjusted chargeable amount is greater than the initial charged amount, the amount of tax charged is taken to be increased to the adjusted chargeable amount.

In this section “the initial charged amount” means the amount of tax charged under section 99 for the period in respect of the interest.

Subsection (4) applies where—

The amount of tax charged for the period with respect to the interest is taken to be reduced (at the end of the chargeable period) to the adjusted chargeable amount.

Relief under subsection (3) must be claimed—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relief under subsection (3) may be given by repayment of tax or otherwise.

See also section 160 (return of adjusted amount chargeable); and see section 163(2) for provision about payment of additional tax by reference to the adjusted chargeable amount.

In this Part “chargeable interest” means—

Where two or more persons are jointly entitled to a chargeable interest the chargeable interest is not regarded, for the purposes of this Part, as consisting of separate interests corresponding to the shares (if any) that those persons have by virtue of their joint entitlement.

An exempt interest is not a chargeable interest for the purposes of this Part.

The following are exempt interests—

In subsection (4) “security interest” means an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation.

In the application of this Part in Scotland the reference in subsection (5) to a rentcharge is to be read as a reference to a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc (Scotland) Act 2000 (asp 5).

The Treasury may by regulations provide that any other description of interest or right in or over a dwelling is an exempt interest.

References in this Part to a “single-dwelling interest” are to be read in accordance with this section.

A chargeable interest that is exclusively in or over land consisting (on any day) of a single dwelling is a single-dwelling interest (on that day).

Where a person is entitled to a chargeable interest that is exclusively in or over land consisting (on any day) of two or more single dwellings—

Where a person is entitled to a chargeable interest in or over land that on any day consists of one or more single dwellings and non-residential land—

A single-dwelling interest is referred to as a single-dwelling interest “in” the dwelling concerned.

A single-dwelling interest in one dwelling is distinct from any single-dwelling interest in another dwelling, even if the dwellings stand successively on the same land.

In this section—

Subsection (2) applies if on one or more days in a chargeable period—

This Part has effect with respect to that chargeable period as if those separate interests constituted just one single-dwelling interest, the taxable value of which on any day is the sum of the taxable values of the separate interests.

In calculating the taxable values of the separate interests for the purposes of subsection (2), the market value of each interest is determined, under the provisions of TCGA 1992 applied by section 98(8), on the assumption that the other interest or interests are placed on the open market with that interest (on the valuation date appropriate to that interest).

If on any day (“the relevant day”) a company (“C”) is entitled to a single-dwelling interest in a dwelling and another person (“P”) who is connected with C is entitled to a different single-dwelling interest in the same dwelling, this Part has effect—

This subsection provides for an exception to subsection (1). Where P is an individual, C is not treated ... as entitled to P's single-dwelling interest on the relevant day unless on that day C is entitled to a single-dwelling interest in the dwelling that is a freehold or leasehold interest with a taxable value of more than £250,000.

Subsection (2B) applies in any case where—

Subsection (2) has effect as if the value specified in it were £500,000 (instead of £250,000).

If on any day a single-dwelling interest (“the scheme interest”) is held for the purposes of a collective investment scheme and a person (“P”) who is connected with the scheme is entitled to a different single-dwelling interest in the same dwelling, this Part has effect—

If on any day a single-dwelling interest in a dwelling is held for the purposes of a collective investment scheme (“the first scheme”) and another interest in the same dwelling is held for the purposes of another collective investment scheme (“the second scheme”) that is connected with the first scheme, this Part has effect—

See also—

The provisions mentioned in subsection (5) are to be read as including corresponding provision for cases where the same single-dwelling interest is treated under this section as held—

In the application of this section to Scotland—

References in section 110 to a person do not include—

Subsections (1) to (4) of section 110 do not apply in relation to a single-dwelling interest if—

Subsection (4) applies where the separate interests (the “relevant interests”) that under section 110 (or that section and section 109) are treated as constituting, on a day, just one single-dwelling interest (“the combined interest”) include—

If the inferior interest is the most inferior relevant interest, the combined interest, and the dwelling itself (where relevant), are regarded for the purposes of the relevant relieving provisions as being exploited, on the day mentioned in subsection (3), in the way the inferior interest is exploited on that day.

If the inferior interest is an interest in part only (“the sub-let part”) of the land that is the subject-matter of the combined interest, subsection (4) has effect in relation to the combined interest only so far as that interest relates to the sub-let part.

In this section “the relevant relieving provisions” means sections 132 to 150.

The inferior interest counts as “the most inferior relevant interest” if no relevant interest (see subsection (3)) is a leasehold interest granted out of it.

In this section the reference to a leasehold interest includes the interest of a lessee under an agreement for a lease.

In the application of this section to Scotland—

A building or part of a building counts as a dwelling at any time when—

Land that is, or is at any time intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure on such land) is taken to be part of that dwelling at that time.

Land that subsists, or is at any time intended to subsist, for the benefit of a dwelling is taken to be part of the dwelling at that time.

A building, or part of a building, used for a purpose specified in section 116(2) or (3) of FA 2003 is not used as a dwelling for the purposes of subsection (1).

Where a building, or part of a building, is used for a purpose mentioned in subsection (4), no account is to be taken for the purposes of subsection (1) of its suitability for any other use.

If a building or part of a building becomes temporarily unsuitable for use as a dwelling for any reason (including accidental damage, repairs or any other physical change to the building or its environment), that temporary unsuitability is ignored in determining whether or not the building or part of a building is, during the period in question, a dwelling for the purposes of this Part. This subsection does not affect any of the provisions in sections 126 to 131.

Subsection (2) applies where—

The chargeable interest deemed to be acquired as mentioned in subsection (1)(b) is taken to be in or over land that consists of or (as appropriate) includes a dwelling.

If at any time after the substantial performance of the contract the obligation under the contract to carry out the construction or adaptation ceases to have effect without the construction or adaptation having been begun, subsection (2) ceases to apply at that time.

A building or part of a building used for a purpose specified in section 116(2) or (3) of FA 2003 is not used as a dwelling for the purposes of subsection (1).

In this section—“contract” includes any agreement (including, in the case of Scotland, missives of let not constituting a lease);“substantially performed” has the same meaning as in section 44 of FA 2003.

The Treasury may by order amend this Part so as to specify cases where use of a building is to be use of a building as a dwelling for the purposes of section 112(1) or 113(1).

The reference in section 116(8)(a) of FA 2003 (power to amend section 116(2) and (3)) to “the purposes of subsection (1)” includes a reference to the purposes of sections 112(1) and 113(1).

The fact that a part of a building is suitable for use as a dwelling does not prevent that part from forming part of a larger single dwelling.

The fact that a building or structure that is—is itself suitable for use as a single dwelling does not prevent it from being treated (in accordance with section 112(2)) as part of the dwelling.

Subsection (4) applies where the conditions in subsection (2) are met in relation to two dwellings (the “main dwelling” and the “associated dwelling”) on a day (“the day in question”) in a chargeable period.

The conditions are that—

The common ownership condition is that—(It does not matter whether or not the interest in the main dwelling and the interest in the associated dwelling are held for the same title.)

This Part has effect in relation to the interests mentioned in paragraph (a) or (as the case may be) (b) of subsection (3) as if the main dwelling and the associated dwelling were, on the day in question, suitable for use as a single dwelling.

Subsection (4) does not apply if—

Those provisions are—section 133 (property rental businesses); section 134 (rental property: preparation for sale etc); section 137 (dwellings opened to the public); section 138 (property developers); section 139 (property developers: exchange of dwellings); section 141 (property traders); section 143 (financial institutions acquiring dwellings in the course of lending); section 144A (regulated home reversion plans); section 145 (occupation by employees or partners of a qualifying trade or property rental business ); section 147A (caretaker flat owned by management company); section 148 (farmhouses); section 150 (providers of social housing).

The reference in subsection (3)(a) to a person connected with the company does not include a public body (as defined in section 153) or a body listed in section 154(2) (bodies established for national purposes).

The reference in subsection (3)(b) to a chargeable interest being held for the purposes of the same collective investment scheme includes a reference to a person connected with the scheme being entitled to the interest.

The associated dwelling has “separate access” only if—

In this section—in relation to a dwelling or dwellings, references to the “garden or grounds” are to land occupied or enjoyed with the dwelling or dwellings as a garden or grounds; references to the person entitled to possession of a dwelling are to the person entitled to possession of the dwelling by reason of an estate or interest held by that person;“separately entitled” means entitled otherwise than by reason of a chargeable interest in or over the main dwelling.

Two parts of a building are “linked dwellings” if—

The common ownership condition is that—(It does not matter whether or not the interests are held for the same title.)

If on a day in a chargeable period (“the day in question”) two parts of a building constitute linked dwellings, this Part has effect in relation to the interests mentioned in paragraph (a) or (as the case may be) (b) of subsection (2) as if the two parts were, on the day in question, suitable for use as a single dwelling.

Subsection (3) does not apply if—

Those provisions are—section 133 (property rental businesses); section 134 (rental property: preparation for sale etc); section 137 (dwellings opened to the public); section 138 (property developers); section 139 (property developers: exchange of dwellings); section 141 (property traders); section 143 (financial institutions acquiring dwellings in the course of lending); section 144A (regulated home reversion plans); section 145 (occupation by employees or partners of a qualifying trade or property rental business ); section 147A (caretaker flat owned by management company); section 148 (farmhouses); section 150 (providers of social housing).

The reference in subsection (2)(a) to a person connected with the company does not include a public body (as defined in section 153) or a body listed in section 154(2) (bodies established for national purposes).

If two dwellings in a building (dwelling A and dwelling B) are treated under this section as suitable for use as a single dwelling, and dwelling B and a third dwelling in the building (“dwelling C”) are treated under this section as suitable for use as a single dwelling, all three are treated as suitable for use as a single dwelling (and so on).

The reference in section 117(2)(b) to a chargeable interest being held for the purposes of the same collective investment scheme includes a reference to a person connected with the scheme being entitled to the interest.

For the purposes of section 117, there is private access between two dwellings if the person entitled to possession of each dwelling is entitled, by reason of a right of way or other interest in land, to have access to that person's dwelling from the other dwelling, without passing over any part of the building (or any other land) in which a third party has an interest entitling that third party to enter it.

In subsection (2) “third party” means a person other than—

The use condition mentioned in section 117(1)(d) is that each of the two dwellings—

In subsection (4) “relevant individual” means—

In this section references to the person entitled to possession of a dwelling are to the person entitled to possession of the dwelling by reason of an estate or interest held by that person.

References in this Part to the acquisition of a chargeable interest include any acquisition however effected (including an acquisition effected by the act of parties to a transaction, by order of a court or other authority, by or under any statutory provision or by operation of law).

The surrender or release of a chargeable interest is—

The variation of a chargeable interest is—

A person who acquires a chargeable interest in or over land that consists of or includes a dwelling is treated for the purposes of this Part as acquiring the interest on the effective date of the acquisition (and therefore as entitled to the interest with effect from that date: see section 171).

A person who disposes of a chargeable interest in or over land that consists of or includes a dwelling is treated for the purposes of this Part as ceasing to be entitled to the interest on the effective date of the disposal (and therefore as not being entitled to the interest on that day: see section 171).

If a person's acquisition and disposal of a chargeable interest are completed on the same day, then for the purposes of this Part—

The effective date of an acquisition of a chargeable interest is—

The effective date of a disposal of a chargeable interest is—

This section applies where a person (“P”) enters into a contract under which—

P is not regarded as acquiring any chargeable interest by reason of entering into the contract.

If the contract is substantially performed without having been completed, this Part has effect as if the substantial performance of the contract were the completion of the acquisition provided for by the contract.

Accordingly, where subsection (3) applies and the contract is subsequently completed by a conveyance, that completion is not treated for the purposes of section 102 (taxable value) as effecting the acquisition of a chargeable interest.

Where subsection (3) applies and—this Part has effect as if P had at the relevant time disposed of the chargeable interest referred to in subsection (1)(a).

In subsection (5) “the relevant time” means—

Where subsection (3) applies and the contract is afterwards varied (or partially rescinded) so that the chargeable interest to be acquired under the contract is not the same as the chargeable interest to which the contract originally related, this Part (including subsection (3)) has effect as if the variation of the contract effected—

If the parties to the contract proceed as if they had varied the contract in the way mentioned in subsection (7) (without actually doing so), subsection (7) applies as if they had actually made the corresponding variation in the terms of the contract.

In this section—

This section applies where a person (“V”) enters into a contract under which—

V is not regarded as disposing of a chargeable interest by reason of entering into the contract.

If the contract is substantially performed without having been completed, this Part has effect as if the substantial performance of the contract were the completion of the disposal provided for by the contract.

Accordingly, where subsection (3) applies and the contract is subsequently completed by a conveyance, that completion is not treated for the purposes of section 102 as effecting the disposal of a chargeable interest.

Where subsection (3) applies and—this Part has effect as if V had at the relevant time re-acquired the chargeable interest referred to in subsection (1)(a).

In subsection (5) “the relevant time” means—

Where subsection (3) applies and the contract is afterwards varied (or partially rescinded) so that the chargeable interest to be disposed of under the contract is not the same as the chargeable interest to which the contract originally related, this Part (including subsection (3)) has effect as if the variation of the contract effected—

If the parties to the contract proceed as if they had varied the contract in the way mentioned in subsection (7) (without actually doing so), subsection (7) applies as if they had actually made the corresponding variation in the terms of the contract.

In this section—

Where a new dwelling is being or has been constructed (whether or not as part of a larger building) the earlier of the following days is a valuation date in the case of a single-dwelling interest in that dwelling—

The reference in subsection (1) to the construction of a new dwelling—

The reference in subsection (1) to the “completion day” is to the day on which the new dwelling is treated as having come into existence for the purposes of—

In this section “building” includes a part of a building.

This section applies where an existing building that is a dwelling or dwellings (“the old dwelling” or “the old dwellings”) becomes a different dwelling or dwellings ( “ new ” dwellings) as a result of structural alteration.

Any question as to whether or not a person has a single-dwelling interest at any time either in the old dwelling or dwellings or in a new dwelling is determined on the assumption that the old dwelling or dwellings cease to exist, and any new dwelling come into existence, only when the conversion is completed.

The day after the conversion is completed is a valuation date in the case of any single-dwelling interest in a new dwelling.

References to when the conversion is completed are to the end of the day on which the new dwelling is treated as having come into existence (or the first day on which all the new dwellings are treated as having come into existence) for the purposes of—

In this section “building” includes a part of a building.

This section and sections 127 to 129 apply where a building that is a dwelling (“the old dwelling”) is demolished after 1 April 2013.

Except so far as express provision to the contrary is made in sections 127 to 129, any question as to whether a person has a single-dwelling interest in the dwelling, and any question as to the taxable value of such an interest, is determined as if the dwelling had not been demolished.

For the purposes of subsection (1) the demolition of a building is treated as having occurred after 1 April 2013 if a day after 1 April 2013 is the first day on which—

In this section “building” includes a part of a building.

Subsection (2) applies if a person entitled to a single-dwelling interest in the old dwelling notifies an officer of Revenue and Customs that to the best of the person's knowledge there is no proposal to construct any dwelling or dwellings on the site of the old dwelling.

Any question as to whether a person has a single-dwelling interest in the old dwelling is determined on the assumption that the old dwelling ceases (or ceased) to exist with effect from the end of the day mentioned in subsection (3).

That day is the first day on which—

A notification under subsection (1) must be given—

In this section—

Subsection (2) applies if one or more dwellings (referred to below as “new dwellings”) are constructed on the site of the old dwelling after the demolition.

Any question as to whether or not a person has a single-dwelling interest at any time either in the old dwelling or in a new dwelling is determined on the assumption that the old dwelling ceases to exist, and the new dwellings come into existence, only when the rebuilding is completed.

The day after the rebuilding is completed is a valuation date in the case of any single-dwelling interest in a new dwelling.

In subsection (1)—

References to when the rebuilding is completed are to the end of whichever of the following days is earlier—

The reference in subsection (5) to the “completion day” is to the day on which the new dwelling is treated as having come into existence (or the first day on which all the new dwellings are treated as having come into existence) for the purposes of—

This section applies if—

Any question as to whether a person has a single-dwelling interest in the old dwelling is determined on the assumption that the old dwelling ceases to exist on the day after—

In subsection (1)—

This section applies where a building or part of a building—

The question whether or not the alterations make the building or part unsuitable for use as a dwelling is one of fact (but see subsection (3)).

The building or part will not be regarded as having become unsuitable for use as a dwelling as a result of the alterations at any time unless by that time any planning permission , development consent or infrastructure consent required for the alterations has been granted (and the alterations have been made in accordance with any such permission or consent).

In this section “planning permission” has the meaning given by the relevant planning enactment.

“The relevant planning enactment” means—

In this section—

This section applies where a dwelling is damaged so as to be temporarily unsuitable for use as a dwelling.

The unsuitability for use as a dwelling is taken into account in applying the definition of “dwelling” for the purposes of this Part (see section 112) only if the first and second conditions are met.

The first condition is that the damage is—

The second condition is that, as a result of the damage, the building concerned is unsuitable for use as a dwelling for at least 90 consecutive days.

Where the first and second conditions are met—

The first condition is regarded as not being met if the damage occurs in the course of work that—

In this section—

In this section references to damage include damage done before 1 April 2013; and days before 1 April 2013 may be taken into account for the purposes of subsection (4).

Subsection (2) applies where tax is charged, in respect of a single-dwelling interest, for a chargeable period that includes one or more days that are relievable as a result of any of the provisions listed in subsection (3) (or for more than one such period).

For any such period, the adjusted chargeable amount is to be calculated on the basis that the chargeable person is not within the charge with respect to the interest on any relievable day.

The provisions are—section 133 (property rental businesses); section 134 (rental property: preparation for sale etc); section 137 (dwellings opened to the public); section 138 (property developers); section 139 (property developers: exchange of dwellings); section 141 (property traders); section 143 (financial institutions acquiring dwellings in the course of lending); section 144A (regulated home reversion plans); section 145 (occupation by employees or partners of a qualifying trade or property rental business ); section 147A (caretaker flat owned by management company); section 148 (farmhouses); section 150 (providers of social housing).

See also section 106 (adjustment of amount chargeable and claim for relief).

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day the interest—

A day is not relievable by virtue of subsection (1) or section 134 in the case of a single-dwelling interest if on that day a non-qualifying individual is permitted to occupy the dwelling.

In this Part “qualifying property rental business” means a property rental business that is run on a commercial basis and with a view to profit.

A business is a “property rental business” for the purposes of subsection (3) if it is a property business as defined in Chapter 2 of Part 4 of CTA 2009, but—

In subsection (1)(b) “without undue delay” means without delay except so far as delay is justified by commercial considerations or cannot be avoided.

In this Part “excluded rents” means rents within any of classes 2 to 6 in the table in section 605(2) of CTA 2010.

A day (“day X”) on which a person (“P”) is entitled to a single-dwelling interest is relievable in relation to that interest if—First condition The first condition is that steps are being taken to secure that the interest will be sold without undue delay. Second condition The second condition is that—steps are being taken to secure that the dwelling will be demolished without undue delay, and if it is intended that a new dwelling will be constructed on the site of the existing dwelling, the intention is that it will be used in a relievable way. Third condition The third condition is that—steps are being taken to secure that the dwelling will be converted into a different dwelling without undue delay, and it is intended that the new dwelling will be used in a relievable way. Fourth condition The fourth condition is that steps are being taken to secure that the dwelling will be converted into a building other than a dwelling without undue delay.

A dwelling is “used in a relievable way” for the purposes of subsection (1) if the single-dwelling interest in question is exploited in such a way, or held in such a way and for such purposes, (or, as the case requires, the dwelling itself is exploited or used in such a way) that a day of such exploitation, ownership or use would be relievable under any of sections 133, 137, 145 and 148.

In this section—“relevant partner”, where P is (on day X) entitled to the interest as a member of a partnership, means a person who was at the time in question carrying on the qualifying rental property business concerned as a member of that partnership;“without undue delay” means without delay, except so far as delay is justified by commercial considerations or cannot be avoided.

Subsection (2) applies if on a day in a chargeable period (“the day of non-qualifying occupation”)—

No subsequent day in that chargeable period, or in any of the subsequent 3 chargeable periods, that meets the continuity of ownership condition and would (in the absence of this subsection) be relievable by virtue of section 133(1)(b) is treated as relievable by virtue of that provision unless a day of qualifying use falls between that day and the day of non-qualifying occupation.

A day meets the continuity of ownership condition if on that day—

Subsection (5) applies if a person who is a non-qualifying individual in relation to a single-dwelling interest occupies the dwelling on a day in a chargeable period (“the day of non-qualifying occupation”).

An earlier day in that or the preceding chargeable period (“the earlier day”) is not relievable by virtue of section 133(1)(b) or 134 if a relevant person is entitled to the single-dwelling interest on that day.

In subsection (5) “relevant person” means—

Subsection (5) does not apply in relation to the earlier day if a day that is relievable by virtue of section 133(1)(a) falls between that earlier day and the day of non-qualifying occupation.

For the purposes of this section—

In sections 133 and 135 “non-qualifying individual”, in relation to a single-dwelling interest, means any of the following—

In subsection (1)(c) “qualifying member”, in relation to a partnership, means a member of the partnership who is entitled to a 50% or greater share—

In subsection (1)(i) “relevant collective investment scheme”, in relation to a single-dwelling interest, means a collective investment scheme that meets the ownership condition with respect to the interest.

A person who participates in a collective investment scheme is a “major participant” in the scheme if the person—

The reference in subsection (4)(a) to profits or income arising from the scheme is to profits or income arising from the acquisition, holding, management or disposal of the property subject to the scheme.

For the purposes of subsection (1), section 1122 of CTA 2010 (as applied by section 172) has effect as if subsections (7) and (8) of that section (application of rules about connected persons to partnerships) were omitted.

In this section—“relative” means brother, sister, ancestor or lineal descendant;“settlement” and “settlor” have the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act).

In subsection (1)(d) “trustee” is to be read in accordance with section 1123(3) of CTA 2010 (“connected persons”: supplementary).

A day in a chargeable period is relievable in relation to a single-dwelling interest if the first or second condition is met on that day.

The first condition is that the dwelling is being exploited as a source of income in the course of a qualifying trade in the normal course of which the public are offered the opportunity to make use of, stay in or otherwise enjoy the dwelling as customers of the trade on least 28 days in any year.

The second condition is that steps are being taken to secure—

In this section “qualifying trade” means a trade carried on on a commercial basis and with a view to profit.

For the purposes of this section persons are not taken to have an opportunity to make use of, stay in or otherwise enjoy a dwelling unless the areas that they are permitted to make use of, stay in or otherwise enjoy include a significant part of the interior of the dwelling.

The size (relative to the size of the whole dwelling), nature, and function of the area or areas concerned are to be taken into account in determining whether they form a significant part of the interior of the dwelling.

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day—

If the property developer holds an interest for the purpose mentioned in subsection (1)(b), any additional purpose the property developer may have of exploiting the interest as a source of rents or other receipts in the course of a qualifying property rental business (after developing the land and before reselling it) is treated as not being a separate purpose in applying the test in subsection (1)(b).

A day is not relievable by virtue of subsection (1) if on the day a non-qualifying individual is permitted to occupy the dwelling.

In this Part “property development trade” means a trade that—

In this section references to development include redevelopment.

A day in a chargeable period is relievable in relation to a single-dwelling interest if—

A day is not relievable by virtue of this section if on that day a non-qualifying individual is permitted to occupy the dwelling.

In this section “the relevant person” means—

The reverse acquisition is “part of a qualifying exchange” only if—

A building or part of a building is a “new dwelling” if—

Subsection (2) applies if on a day in a chargeable period—

No subsequent day is relievable in the case of the single-dwelling interest by virtue of section 138(1) or 139(1) if—

There is “continuity of ownership” on any day on which—

Subsection (5) applies if—

The earlier day is not relievable by virtue of section 138(1) in the case of the single-dwelling interest if—

Subsection (7) applies if—

The earlier day is not relievable by virtue of section 139(1) in the case of the single-dwelling interest if—

If a day that is relievable by virtue of section 133(1)(a) falls between the earlier day mentioned in subsection (5) or (as the case may be) (7) and the day of non-qualifying occupation, that subsection does not apply in relation to that earlier day.

For the purposes of sections 138 and 139 and this section—

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day—

A single-dwelling interest in a dwelling is taken not to be held for the sole purpose of resale in the course of a property trading business at any time when a non-qualifying individual is permitted to occupy the dwelling.

In this Part “property trading business” means a business that—

Subsection (2) applies if on a day in a chargeable period (“the day of non-qualifying occupation”)—

No subsequent day is relievable in the case of the single-dwelling interest by virtue of section 141(1) if—

If on the day of non-qualifying occupation mentioned in subsection (1) the property trader carries on the property trading business in partnership, “relevant partner” means any other person who is, at any time, a member of that partnership.

Subsection (5) applies if—

The earlier day is not relievable by virtue of section 141(1) in the case of the single-dwelling interest if—

Subsection (5) does not apply in relation to the earlier day if a day that is relievable by virtue of section 133(1)(a) falls between the earlier day and the day of non-qualifying occupation.

For the purposes of this section and section 141—

A day in a chargeable period is relievable in relation to a single-dwelling interest if matters stand as follows on that day—

A single-dwelling interest in a dwelling is taken not to be held with the intention mentioned in subsection (1)(c) at any time when a non-qualifying individual is permitted to occupy the dwelling.

In this Part (except where otherwise stated) “financial institution” has the meaning given by section 564B of ITA 2007; but for this purpose section 564B(1) is to be read as if paragraph (d) of that subsection were omitted.

Subsection (2) applies if on a day in a chargeable period—

No subsequent day is relievable in the case of the single-dwelling interest by virtue of section 143(1) if—

There is continuity of ownership on a day on which—

Subsection (5) applies if—

The earlier day is not relievable by virtue of section 143(1) in the case of the single-dwelling interest if—

Subsection (5) does not apply in relation to the earlier day if a day that is relievable by virtue of section 133(1)(a) falls between the earlier day and the day of non-qualifying occupation.

For the purposes of this section and section 143—

A day in a chargeable period is relievable in relation to a single dwelling interest held by a person (“P”) who is an authorised plan provider if—

If no qualifying termination event has occurred, the “occupation condition” is that a person who was originally entitled to occupy the dwelling (or any part of it) under the regulated home reversion plan is still entitled to do so.

If a qualifying termination event has occurred, the “occupation condition” is that—

In this section—“authorised plan provider” means a person authorised under the Financial Services and Markets Act 2000 to carry on in the United Kingdom the regulated activity specified in article 63B(1) of the Regulated Activities Order (entering into regulated home reversion plan as plan provider);“qualifying termination event” is to be interpreted in accordance with article 63B of the Regulated Activities Order;“the Regulated Activities Order” means the Financial Services and Markets (Regulated Activities) Order 2001 (S.I. 2001/544);“regulated home reversion plan” means an arrangement which is a regulated home reversion plan for the purposes of Chapter 15A of Part 2 of the Regulated Activities Order (but see also subsection (6)).

In this section references to entering into a regulated home reversion plan “as plan provider” are to be interpreted as if the references were in the Regulated Activities Order (but see also subsection (6)).

For the purposes of this section—

Section 136 (meaning of “non-qualifying individual”) applies in relation to this section as in relation to sections 133 and 135.

A day in a chargeable period is a relievable if matters stand as follows on that day—

“Qualifying trade” means a trade that is carried on on a commercial basis and with a view to profit.

In this section references to making a dwelling available to a qualifying employee or qualifying partner include making it available to persons who are to share the accommodation with such an individual as their family.

Where P is a company, “a relevant group member” means a company which is a member of the same group as P for the purposes mentioned in paragraph 1(2) of Schedule 7 to FA 2003 (stamp duty land tax: group relief).

For the meaning of “qualifying property rental business” see section 133(3).

In a case where the person carrying on the trade or property rental business mentioned in section 145(1)(b) carries it on in partnership with one or more other persons, “qualifying partner” means any individual who is a member of the partnership, except one who is entitled to a 10% or greater share—

“Qualifying employee” means any individual employed for the purposes of the qualifying trade or qualifying property rental business , except one who—

The reference in subsection (2)(b) to an individual who provides excluded domestic services is to an individual the duties of whose employment include the provision of services in connection with the (actual or intended) occupation, by a non-qualifying individual, of the dwelling mentioned in section 145(1)(c) (“the relevant dwelling”), or a linked dwelling.

In subsection (3) “non-qualifying individual” means an individual connected with a person who is entitled to the single-dwelling interest.

The following are “linked” dwellings for the purposes of subsection (3)—

In this section references to employment include the holding of an office.

For the purposes of subsections (1)(c) and (2)(a)(iii) persons who are entitled to a chargeable interest as beneficial joint tenants (or, in Scotland, as joint owners) are taken to be entitled to the chargeable interest as beneficial tenants in common (or, in Scotland, as owners in common) in equal shares.

This section applies for the purposes of section 146.

An individual (“P”) is taken to be entitled to a 10% or greater share in a company (“C”) if P possesses (directly or indirectly) or is entitled to acquire—

Any rights that P or any other person has as a loan creditor are to be disregarded for the purposes of the assumption in subsection (2)(d).

For the purposes of subsection (2) a person is treated as entitled to acquire anything which the person—

If a person—those rights or powers are to be attributed to A.

The following are also to be attributed to a person—

The rights and powers which are to be attributed under subsection (6)—

A person who does not meet the conditions in subsection (2) is nevertheless treated as having a 10% or greater share in a company if the person exercises, is able to exercise or is entitled to acquire, direct or indirect control over the company's affairs.

In this section—“associate” has the same meaning as in Part 10 of CTA 2010 (see section 448 of that Act); but for this purpose section 448 is to be read as if the words “or partner” were omitted in subsection (1)(a);“control” has the same meaning as in that Part (see section 450 of that Act);“loan creditor” has the same meaning as in that Part (see section 453 of that Act);“participator” has the same meaning as in that Part (see section 454 of that Act).

A day in a chargeable period is relievable in relation to a single-dwelling interest if the dwelling in question is a flat in relation to which the conditions in subsection (2) are met.

The conditions are that on that day—

For the purposes of subsection (2), the management company makes a flat available “as caretaker accommodation” if it makes it available to an individual for use as living accommodation in connection with the individual's employment as caretaker of the premises.

In this section “premises” means premises constituting the whole or part of a building.

This section applies where on a day in a chargeable period—

That day is relievable in relation to the single-dwelling interest if on that day the farmhouse is occupied—

A trade of farming is a “qualifying trade of farming” only if it is carried on—

In this section—“farming” has the same meaning as in the Corporation Tax Acts (see section 1125 of CTA 2010), except that in this section “farming” includes market gardening;“market gardening” has the same meaning as in the Corporation Tax Acts (see section 1125(5) of CTA 2010).

An individual is a “farm worker” in relation to the qualifying trade of farming mentioned in section 148(1) at any time when the individual has a substantial involvement in—

Where section 148 applies, an individual occupying the farmhouse on the day mentioned in section 148(1) is a “former long-serving farm worker” if the individual had, before that day, been a farm worker in relation to the qualifying trade of farming for—

In subsection (2) “qualifying period” means a period throughout which—

A person occupying part of a dwelling is regarded as occupying the dwelling for the purposes of this section and section 148.

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day—

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day—

The condition mentioned in subsection (2) is that—

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day a qualifying housing co-operative (as defined by section 150A) is entitled to the interest.

In this section—

A company is a “qualifying housing co-operative” for the purposes of section 150(3A) on any day if on that day—

The rules of the association—

A charitable company that is entitled to a single-dwelling interest is regarded as not meeting the ownership condition with respect to the interest on any day on which the interest is held by the company for qualifying charitable purposes, other than an excluded day.

The interest is “held for qualifying charitable purposes” if it is held—

A day is an “excluded day” if the following conditions are met—but see the exception in subsection (5).

In subsection (3)(b) “linked individual” means an individual who—

A day is not an “excluded day” if the first, second or third condition is met on that day. The first condition is that the activities undertaken for carrying out the primary purposes of the charitable company include, or normally include, opening the dwelling to the public. The second condition is that the dwelling is being exploited through commercial activities that involve, or normally involve, opening the dwelling to the public. The third condition is that steps are being taken—to secure that the first or second condition will be met without undue delay, or to secure that the single-dwelling interest will be sold without undue delay.

In subsection (5)—

For the purposes of subsection (6)(a), the size (relative to the size of the whole dwelling or of the whole garden or grounds), nature, and function of the areas concerned are to be taken into account in determining whether they form a significant part of the interior of the dwelling or (as the case may be) of the garden or grounds.

For the purposes of subsection (3)(a)—

In section 151 “associate”, in relation to the donor, means any of the following—

In subsection (1)—“relative” means brother, sister, ancestor or lineal descendant;“settlement” and “settlor” have the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act).

In subsection (1)(b) “trustee” is to be read in accordance with section 1123(3) of CTA 2010 (“connected persons”: supplementary).

For the purposes of section 151 occupation of any part of a dwelling is regarded as occupation of the dwelling.

For the purposes of section 151(3)—

Arrangements entered into before the day on which this Act is passed are disregarded for the purposes of section 151(3) unless a material alteration has been made to them on or after that date.“Material alteration” means an alteration affecting anything in the arrangements that relates to the individual's having (at any time), or potentially having, permission to occupy the dwelling.

References in section 151 and this section to a gift include the disposal of an asset for consideration of an amount or value which is less than the market value of the asset.

In section 151 and this section “arrangements” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.

A public body is not regarded as a company for the purposes of this Part.

In this section—

The power of the Treasury to prescribe persons by an order under section 66(4) of FA 2003 may be exercised so as to make different provision for purposes relating to annual tax on enveloped dwellings and stamp duty land tax.

In paragraph (b) of subsection (2) “company” means a company as defined by section 1 of the Companies Act 2006 (and subsection (1) is to be ignored in interpreting that paragraph).

A body listed in subsection (2) is not regarded as a company for the purposes of this Part.

The bodies are—the Historic Buildings and Monuments Commission for England; the Trustees of the British Museum; the Trustees of the National Heritage Memorial Fund; the Trustees of the Natural History Museum.

Subsection (2) applies to a single-dwelling interest if—

The taxable value of the single-dwelling interest on any day is taken to be zero if no chargeable event has occurred with respect to the dwelling in the time between the transfer of value and the beginning of that day.

Subsection (4) applies to a single-dwelling interest if—

The taxable value of the single-dwelling interest on any day is taken to be zero if no chargeable event has occurred with respect to the dwelling in the time between the conditionally exempt occasion and the beginning of that day.

In this section—“chargeable event” means an event which is a chargeable event under section 32 of IHTA 1984;“conditionally exempt occasion” is to be read in accordance with section 78(2) of that Act;“transfer of value” has the same meaning as in that Act.

The Treasury may by regulations—

In subsection (1)—

This section applies where—

This Part has effect in relation to times when the arrangements are in operation as if—

The reference in subsection (2) to times when the arrangements are in operation is to times when—

A company or individual treated under subsection (2)(a) as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the leasehold interest as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).

In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—

The reference in subsection (5) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—

In this section—“financial institution” has the meaning given by section 73BA of FA 2003;“the first transaction” has the same meaning as in section 71A ... of FA 2003;“further transaction” has the same meaning as in section 71A of FA 2003;“the leasehold interest” means the interest granted to the lessee under the second transaction;“the second transaction” has the same meaning as in section 71A ... of FA 2003.

The reference in subsection (1) to a major interest in land is to be read in accordance with section 117 of FA 2003.

Where the lessee is an individual, references in subsections (2), (3), (5) and (6) to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee's personal representatives.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

This section applies where Conditions A and B are met.

Condition A is that arrangements are entered into between a person (“the lessee”) and a financial institution under which the institution—

Condition B is that the land in which the institution purchases a major interest under the first transaction is in Scotland and consists of or includes one or more dwellings or parts of a dwelling.

This Part has effect in relation to times when the arrangements are in operation (see subsection (5)) as if—

The reference in subsection (4) to times when the arrangements are in operation is to times when—

A company or individual treated under subsection (4)(a) as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the interest granted to it under the second transaction as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).

In relation to times when the arrangements operate for the benefit of a collective investment scheme (see subsection (8)), this Part has effect as if—

The reference in subsection (7) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—

In this section “financial institution” has the same meaning as in section 71A of FA 2003 (see section 73BA of that Act).

References in this section to a “major interest” in land are to—

Where the lessee is an individual, references in subsections(4), (5),(7) and (8) to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee's personal representatives.

This section applies where—

This Part has effect in relation to times when the arrangements are in operation as if—

The reference in subsection (2) to times when the arrangements are in operation is to times when—

A company or individual treated under subsection (2)(a) as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the leasehold interest as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).

In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—

The reference in subsection (5) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—

In this section—“financial institution” has the meaning given by paragraph 8 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017;“the first transaction” has the same meaning as in paragraph 2 of Schedule 10 to that Act;“further transaction” has the same meaning as in paragraph 2 of Schedule 10 to that Act;“the leasehold interest” means the interest granted to the lessee under the second transaction;“the second transaction” has the same meaning as in paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.

The reference in subsection (1) to a major interest in land is to be read in accordance with section 68 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.

Where the lessee is an individual, references in subsections(2),(3),(5) and(6) to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee’s personal representatives.

Where tax is charged on a person for a chargeable period with respect to a single-dwelling interest the person must deliver a return for the period with respect to the interest.

A return under subsection (1) must be delivered by the end of the period of 30 days beginning with first day in the period on which the person is within the charge with respect to the interest.

If the first day in the chargeable period on which the person is within the charge with respect to the interest (“day 1”) is a valuation date only because of section 124 (new dwellings) or section 125 (dwellings produced from other dwellings)—

Where a person—subsection (2) has effect as if it required the return mentioned in paragraph (a) to be delivered by the later date.

A return under this section must be delivered to an officer of Revenue and Customs, and is called an “annual tax on enveloped dwellings return”.

“Relief declaration return” means an annual tax on enveloped dwellings return which—

A relief declaration return may be made in respect of one or more single-dwelling interests.

A relief declaration return delivered to an officer of Revenue and Customs on a particular day (“the day of the claim”) is treated as made in respect of any single-dwelling interest in relation to which the conditions in subsection (4) are met (but need not contain information which identifies the particular single-dwelling interest or interests concerned).

The conditions are that—

The statement under subsection (1)(a) in a relief declaration return is treated as a claim for interim relief (see section 100) with respect to the single-dwelling interest (or interests) in respect of which the return is made.

Subsection (7) applies where—

The existing return is treated as also made with respect to that other single-dwelling interest.

For the purposes of subsection (6)(b), the “relevant conditions” are the same as the conditions in subsection (4), except that for this purpose references in subsection (4) to the day of the claim are to be read as references to day S.

This table sets out the numbered types of relief to which the provisions specified in the left hand column relate—

Where a person—the failure may be taken, for the purposes of Schedule 55 to FA 2009, to be a failure to make a single annual tax on enveloped dwellings return.

In this section—“pre-claim period” has the same meaning as in section 100;“taxable day”, in relation to a person and a single-dwelling interest, means a day on which the person is within the charge with respect to the interest, other than a day which is relievable in relation to the interest.

A person on whom tax is charged for a chargeable period with respect to a single-dwelling interest must deliver a further return for the period with respect to the interest if the first or second condition is met.

The return must be delivered by the end of the period of 30 days beginning with the first day of the period following the period for which the tax is charged (but see subsection (3)).

If the return is required because the second condition is met and the adjusted chargeable amount is affected by an event that has occurred after the end of the chargeable period mentioned in subsection (1), the return must be delivered by the end of the period of 30 days beginning with the day on which that event occurred.

The first condition is that—

The second condition is that—

A return under this section must be delivered to an officer of Revenue and Customs, and is called a “return of the adjusted chargeable amount”.

A return must include a self assessment.

In subsection (1) “return” means—

The reference in subsection (2)(a) to an annual tax on enveloped dwellings return does not include a relief declaration return.

In the case of an annual tax on enveloped dwellings return, “self assessment” means an assessment of—

In the case of a return of the adjusted chargeable amount, “self assessment” means an assessment of—

A self assessment must include a statement of the amount taken to be the market value of the interest on each valuation date (earlier than the date on which the return is delivered) that is relevant for the purposes of the assessment.

Schedule 33 contains provision about returns, enquiries and related matters.

The Treasury may by regulations—