157 Land in England ... or Northern Ireland sold to financial institution and leased to person
(1) This section applies where—
(a) section 71A of FA 2003 (land sold to financial institution and leased to person) ... applies in relation to arrangements entered into between a financial institution and another person (“the lessee”), and
(b) the land in which the institution purchases a major interest under the first transaction is in England ... or Northern Ireland and consists of or includes one or more dwellings (or parts of a dwelling).
(2) This Part has effect in relation to times when the arrangements are in operation as if—
(a) the interest held by the financial institution as mentioned in subsection (3)(b) were held by the lessee (and not by the financial institution), and
(b) the lease or sub-lease granted under the second transaction had not been granted.
(3) The reference in subsection (2) to times when the arrangements are in operation is to times when—
(a) the lessee holds the leasehold interest granted to it under the second transaction, and
(b) the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.
(4) 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).
(5) In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—
(a) the interest held by the financial institution as mentioned in subsection (6)(b) were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and
(b) the lease or sub-lease granted under the second transaction had not been granted.
(6) The reference in subsection (5) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—
(a) the lessee holds the leasehold interest for the purposes of a collective investment scheme, and
(b) the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.
(7) 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.
(8) The reference in subsection (1) to a major interest in land is to be read in accordance with section 117 of FA 2003.
(9) 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.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
157A Land in Scotland sold to financial institution and leased to person
(1) This section applies where Conditions A and B are met.
(2) Condition A is that arrangements are entered into between a person (“the lessee”) and a financial institution under which the institution—
(a) purchases a major interest in land (“the first transaction”),
(b) grants to the lessee out of that interest a lease (if the interest acquired is the interest of the owner) or a sub-lease (if the interest acquired is the tenant's right over or interest in a property subject to a lease) (“the second transaction”), and
(c) enters into an agreement under which the lessee has a right to require the institution to transfer the major interest purchased by the institution under the first transaction.
(3) 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.
(4) This Part has effect in relation to times when the arrangements are in operation (see subsection (5)) as if—
(a) the interest held by the financial institution as mentioned in subsection (5)(b) were held by the lessee (and not by the financial institution), and
(b) the lease or sub-lease granted under the second transaction had not been granted.
(5) The reference in subsection (4) to times when the arrangements are in operation is to times when—
(a) the lessee holds the interest granted to it under the second transaction, and
(b) the interest purchased under the first transaction is held by a financial institution.
(6) 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).
(7) 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—
(a) the interest held by the financial institution as mentioned in subsection (8)(b) were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and
(b) the lease or sub-lease granted under the second transaction had not been granted.
(8) The reference in subsection (7) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—
(a) the lessee holds the interest granted to it under the second transaction for the purposes of a collective investment scheme, and
(b) the interest purchased under the first transaction is held by a financial institution.
(9) In this section “financial institution” has the same meaning as in section 71A of FA 2003 (see section 73BA of that Act).
(10) References in this section to a “major interest” in land are to—
(a) ownership of land, or
(b) the tenant's right over or interest in land subject to a lease.
(11) 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.
157B Land in Wales sold to financial institution and leased to person
(1) This section applies where—
(a) paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1) (land in Wales sold to financial institution and leased to person) applies in relation to arrangements entered into between a financial institution and another person (“the lessee”), and
(b) the land in which the institution purchases a major interest under the first transaction is in Wales and consists of or includes one or more dwellings (or parts of a dwelling).
(2) This Part has effect in relation to times when the arrangements are in operation as if—
(a) the interest held by the financial institution as mentioned in subsection (3)(b) were held by the lessee (and not by the financial institution), and
(b) the lease or sub-lease granted under the second transaction had not been granted.
(3) The reference in subsection (2) to times when the arrangements are in operation is to times when—
(a) the lessee holds the leasehold interest granted to it under the second transaction, and
(b) the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.
(4) 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).
(5) In relation to times when the arrangements operate for the benefit of a collective investment scheme, this Part has effect as if—
(a) the interest held by the financial institution as mentioned in subsection (6)(b) were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and
(b) the lease or sub-lease granted under the second transaction had not been granted.
(6) The reference in subsection (5) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—
(a) the lessee holds the leasehold interest for the purposes of a collective investment scheme, and
(b) the interest purchased under the first transaction (or that interest except so far as transferred by a further transaction) is held by a financial institution.
(7) 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.
(8) 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.
(9) 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.
(1) 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.
(2) 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.
(3) 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)—
(a) subsection (2) does not apply, and
(b) the return must be delivered by the end of the period of 90 days beginning with day 1.
(3A) Where a person—
(a) would (apart from this subsection) be required in accordance with subsection (2) to deliver a return for a chargeable period (“the later period”) by 30 April in that period, and
(b) is also required in accordance with subsection (3) to deliver a return for the previous chargeable period by a date (“the later date”) which is later than 30 April in the later period,
subsection (2) has effect as if it required the return mentioned in paragraph (a) to be delivered by the later date.
(4) 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”.
(1) “Relief declaration return” means an annual tax on enveloped dwellings return which—
(a) states that it is a relief declaration return,
(b) relates to one (and only one) of the types of relief listed in the table in subsection (9), and
(c) specifies which type of relief it relates to.
(2) A relief declaration return may be made in respect of one or more single-dwelling interests.
(3) 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).
(4) The conditions are that—
(a) the person making the return is within the charge with respect to the single-dwelling interest on the day of the claim;
(b) the day of the claim is relievable in relation to the single-dwelling interest by virtue of a provision which relates to the type of relief specified in the return (see subsection (9));
(c) none of the days in the pre-claim period is a taxable day.
(5) 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.
(6) Subsection (7) applies where—
(a) a person has delivered to an officer of Revenue and Customs on any day a relief declaration return for a chargeable period with respect to one or more single-dwelling interests (“the existing return”), and
(b) there is a subsequent day (“day S”) in the same chargeable period on which the relevant conditions are met in relation to another single-dwelling interest.
(7) The existing return is treated as also made with respect to that other single-dwelling interest.
(8) 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.
(9) This table sets out the numbered types of relief to which the provisions specified in the left hand column relate—
Provision | Type of relief to which it relates
Section 133 or 134 (property rental business) | 1
Section 137 (dwellings opened to the public) | 2
Section 138 or 139 (property developers) | 3
Section 141 (property traders) | 4
Section 143 (financial institutions acquiring dwellings) | 5
144A (regulated home reversion plans) | 5A
Section 145 or 147A (occupation by certain employees etc) | 6
Section 148 (farmhouses) | 7
Section 150 (providers of social housing) | 8
(10) Where a person—
(a) has failed to make annual tax on enveloped dwellings returns in respect of two or more single-dwelling interests, and
(b) could have discharged the duties in question by making a single relief declaration return in respect of all the interests,
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.
(11) 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.
(1) 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.
(2) 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)).
(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.
(4) The first condition is that—
(a) the person has not made a claim under section 100 (interim relief) with respect to the interest for the chargeable period, and
(b) the adjusted chargeable amount is greater than the amount charged under section 99 with respect to the single-dwelling interest for the period.
(5) The second condition is that—
(a) the person has made one or more claims under section 100 with respect to the interest for the chargeable period, and
(b) the sum of amounts A and B, as calculated under that section, in connection with the last of those claims is less than the adjusted chargeable amount.
(6) 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”.
(1) A return must include a self assessment.
(2) In subsection (1) “return” means—
(a) an annual tax on enveloped dwellings return, or
(b) a return of the adjusted chargeable amount.
(2A) The reference in subsection (2)(a) to an annual tax on enveloped dwellings return does not include a relief declaration return.
(3) In the case of an annual tax on enveloped dwellings return, “self assessment” means an assessment of—
(a) the amount of tax to which the person is chargeable under section 99 for the period in respect of the interest, and
(b) if the return includes a claim under section 100 (interim relief), the tax payable after the relief.
(4) In the case of a return of the adjusted chargeable amount, “self assessment” means an assessment of—
(a) the adjusted chargeable amount, and
(b) the additional tax payable in accordance with section 163(2).
(5) 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.
162 Returns, enquiries, assessments and other administrative matters
(1) Schedule 33 contains provision about returns, enquiries and related matters.
(2) The Treasury may by regulations—
(a) make any amendments of Schedule 33 that they may at any time think appropriate;
(b) make any amendment of any other provision of this Part that may be necessary in consequence of provision under paragraph (a).
(1) Tax charged on a person under section 99 for a chargeable period with respect to a single-dwelling interest must be paid not later than the filing date for the annual tax on enveloped dwellings return required to be made for the period with respect to the interest.
(2) So far as a chargeable person's adjusted chargeable amount for a chargeable period with respect to a single-dwelling interest exceeds the amount payable under subsection (1) (as modified, where applicable, by section 100(3)), the amount of the difference must be paid not later than the filing date for the return of the adjusted chargeable amount under section 160.
(3) Tax payable as a result of the amendment of a return must be paid—
(a) immediately, or
(b) if the amendment is made on or before the filing date for the return, not later than that date.
(4) In subsection (3) “return” means—
(a) an annual tax on enveloped dwellings return, or
(b) a return of the adjusted chargeable amount.
(5) Tax payable in accordance with a determination or assessment by an officer of Revenue and Customs must be paid within the period of 30 days beginning with the day on which the determination or assessment is issued.
(1) Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery of tax) has effect in relation to the collection and recovery of tax under this Part as it has effect in relation to stamp duty land tax.
(2) The reference in subsection (1) to tax under this Part includes any unpaid penalty or interest under this Part.
(1) In this Part “company” means a body corporate but does not include—
(a) a corporation sole, or
(b) any partnership (see section 167(1)).
(2) Everything to be done by a company under this Part must be done by the company acting through—
(a) the proper officer of the company, or
(b) another person who has the express, implied or apparent authority of the company to act on its behalf for the purpose.
(3) Service of a document on a company under this Part may be effected by serving the document on the proper officer.
(4) Tax due from any company that is incorporated under the law of a country or territory outside the United Kingdom may be recovered from the proper officer of the company (as well as by any means available in the absence of this subsection).
(5) The proper officer—
(a) may retain, out of any money that may come into the officer's hands on the company's behalf, enough money to pay that tax, and
(b) is entitled to be fully reimbursed by the company (whether by that method or another) for amounts recovered from the officer under subsection (4).
(6) For the purposes of this section the proper officer of a company is—
(a) the secretary, or a person acting as secretary, of the company, or
(b) if the company does not have a proper officer within paragraph (a), the treasurer, or a person acting as treasurer, of the company.
(7) If a liquidator has been appointed for the company—
(a) subsections (2)(b) and (6) do not apply, and
(b) the liquidator is the proper officer of the company.
(8) If an administrator has been appointed for the company—
(a) subsection (6) does not apply, and
(b) the administrator is the proper officer of the company.
(9) If two or more persons are appointed to act jointly or concurrently as the administrator of the company, the proper officer of the company is—
(a) whichever of those persons is specified in a notice given by the administrators to an officer of Revenue and Customs for the purposes of this section, or
(b) if no notice is given under paragraph (a), whichever of those persons is designated by an officer of Revenue and Customs as the proper officer for those purposes.
(10) See also section 153 (public bodies) and section 154 (bodies established for national purposes).
(1) In this Part “partnership” means—
(a) a partnership within the Partnerships Act 1890,
(b) a limited partnership registered under the Limited Partnerships Act 1907,
(c) a limited liability partnership formed under the Limited Liability Partnerships Act 2000 or the Limited Liability Partnerships Act (Northern Ireland) 2002, or
(d) a firm or entity of a similar character to any of those mentioned in paragraphs (a) to (c) formed under the law of a country or territory outside the United Kingdom.
(2) This Part has effect as follows in relation to a partnership (for instance, a limited liability partnership formed as mentioned in subsection (1)(c)) that is itself capable of being entitled to, or of acquiring or disposing of, a chargeable interest—
(a) transactions entered into on behalf of the partnership are treated as entered into by or on behalf of the partners;
(b) where the partnership is entitled to a single-dwelling interest, this Part has effect as if the partners were jointly entitled to the interest (and the partnership had no entitlement to it).
(3) For the purposes of this Part a partnership is treated as the same partnership despite a change in membership if any person who was a member before the change remains a member after the change.
(4) For the purposes of this Part—
(a) a collective investment scheme is not regarded as a partnership, and
(b) accordingly, a member of a partnership by or on whose behalf a single-dwelling interest is held for the purposes of a collective investment scheme is not regarded as entitled to the interest as a member of the partnership.
(5) Anything required or authorised by this Part to be done by or in relation to the responsible partners for a partnership may instead be done by or in relation to any representative partner or partners.
(6) A representative partner means a partner nominated by a majority of the partners to act as the representative of the partnership for the purposes of this Part of this Act.
(7) Any such nomination, or the revocation of such a nomination, has effect only after notice of the nomination, or revocation, has been given to an officer of Revenue and Customs.
(1) Orders and regulations under this Part are to be made by statutory instrument.
(2) A statutory instrument containing an order or regulations made under this Part is subject to annulment in pursuance of a resolution of the House of Commons.
(3) Subsection (2) does not apply to—
(a) an instrument containing only an order under section 101(5), or
(b) an instrument to which subsection (4) applies.
(4) A statutory instrument containing (whether alone or with other provision) provision made under section 156(1) or 162(2) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
(5) An order or regulations under this Part—
(a) may make different provision for different purposes,
(b) may include consequential or transitional provisions or savings.
170 Meaning of “chargeable day” and “within the charge”
(1) Any day on which the conditions in section 94(2) are met with respect to a single-dwelling interest is a “chargeable day” for that interest.
(2) Where a day is a chargeable day as a result of subsection (1), the chargeable person is “within the charge” with respect to a single-dwelling interest on that day.
In determining for the purposes of any provision of this Part whether or not a state of affairs obtains on a particular day, it is to be assumed that the state of affairs obtaining at the end of the day persisted throughout the day.
(1) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this Part (except where otherwise stated).
(2) For the purposes of this Part a person is taken to be connected with a collective investment scheme if the person is a participant in the scheme who—
(a) is entitled to a share of at least 50% either of all the profits or income arising from the scheme or of any profits or income arising from the scheme that may be distributed to participants, or
(b) would in the event of the winding up of the scheme be entitled to 50% or more of the assets of the scheme that would then be available for distribution among the participants.
(3) The reference in subsection (2) to a collective investment scheme does not include a unit trust scheme; but see section 1123(2) of CTA 2010 (provision about the application of rules about connected persons to unit trust schemes).
(4) The reference in subsection (2)(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.
(5) For the purposes of subsection (2) a person is taken to have any rights and powers that the person—
(a) is entitled to acquire at a future date, or
(b) will at a future date be entitled to acquire.
(6) For the purposes of subsection (2) the rights and powers of any associate of a person (or of any two or more associates of a person) are to be attributed to the person.
(7) 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).
(1) For the purposes of this Part a person is to be treated as connected to a cell company where, if any cell of the company were a separate company, the person would be connected to that separate company.
(2) For the purposes of this section a company is a “cell company” if it meets the first or second condition.
(3) The first condition is that under the law under which the company is incorporated or formed, under the company's articles of association or other document regulating the company or under arrangements entered into by or in relation to the company—
(a) some or all of the assets of the company are available primarily, or only, to meet particular liabilities of the company, and
(b) some or all of the members of the company, and some or all of its creditors, have rights primarily, or only, in relation to particular assets of the company.
(4) The second condition is that the company's articles of association, or other document regulating it, establish an entity (by whatever name known) which—
(a) under the law under which the company is incorporated or formed, has legal personality distinct from that of the company, and
(b) which is not itself a company.
(5) For the purposes of this section a “cell”, in relation to a cell company, is—
(a) an identifiable part of the company (by whatever name known) that carries on distinct business activities and to which particular assets and liabilities of the company are primarily or wholly attributable, or
(b) an entity of the kind specified in subsection (4).
(1) In this Part—
“chargeable day” (in relation to a single-dwelling interest) is to be read in accordance with section 170;
“chargeable interest” has the meaning given by section 107;
“the chargeable person” has the meaning given by section 96(2) or (3);
“closure notice” has the meaning given by paragraph 16 of Schedule 33;
“collective investment scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 235 of that Act);
“company” has the meaning given by section 166(1);
“completion”, in Scotland, means—
in relation to a lease, when it is executed by the parties (that is to say, by signing) or constituted by any means,
in relation to any other transaction, the settlement of the transaction;
“discovery assessment” has the meaning given by paragraph 21 of Schedule 33;
“EEAUCITS” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 237 of that Act);
“excluded rents” has the meaning given by section 133(6);
“farming” has the meaning given by section 148(4);
“filing date”, in relation to an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount, has the meaning given by paragraph 58 of Schedule 33;
“financial institution” has the meaning given by section 143 (except where otherwise stated);
“HMRC” means Her Majesty's Revenue and Customs;
“HMRC determination” has the meaning given by paragraph 18 of Schedule 33;
“jointly entitled” means—
in England and Wales, beneficially entitled as joint tenants or tenants in common,
in Scotland, entitled as joint owners or owners in common,
in Northern Ireland, beneficially entitled as joint tenants, tenants in common or coparceners;
“land” includes—
buildings and structures, and
land covered by water;
“market value” has the meaning given by section 98(8);
“notice of enquiry” has the meaning given by paragraph 8 of Schedule 33;
“open-ended investment company” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 236(1) of that Act);
“participant”, in relation to a collective investment scheme, has the meaning given by section 98(7);
“partnership” has the meaning given by section 167;
“property development trade” has the meaning given by section 138(4);
“property rental business” has the meaning given by section 133(4);
“property trading business” has the meaning given by section 141(3);
“qualifying property rental business” has the meaning given by section 133(3);
“self assessment” has the meaning given by section 161(3);
“tax” means tax under this Part;
“trade” has the same meaning as in section 35 of CTA 2009 (and cognate expressions are to be read accordingly);
“unit trust scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 237(1) of that Act).
(2) In this Part—
references to the “adjusted chargeable amount”, in relation to a person on whom tax is charged for a chargeable period with respect to a single-dwelling interest, are to be read in accordance with section 105;
references to an “annual tax on enveloped dwellings return” are to be read in accordance with section 159(4);
references to the “daily amount” for a day are to be read in accordance with section 105(2);
references to “delivery”, in relation to an annual tax on enveloped dwellings return, are to be read in accordance with paragraph 2 of Schedule 33;
references to the “effective date” of an acquisition are to be read in accordance with section 121(4);
references to the “effective date” of a disposal are to be read in accordance with section 121(5);
references to a “major interest” in land are to be read in accordance with section 117 of FA 2003;
references to the “management company”, in relation to an EEA UCITS, are to be read in accordance with Article 2.1(b) of the Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities;
references to a “return of the adjusted chargeable amount” are to be read in accordance with section 160(6);
references to meeting the “ownership condition” are to be read in accordance with section 94(4) to (6);
references to being “within the charge” with respect to a single-dwelling interest are to be read in accordance with section 170.
175 Open- ended investment companies and authorised unit trusts
(1) In section 65 of IHTA 1984 (settlements without interests in possession etc: charge when property ceases to be relevant property etc), after subsection (7) insert—
(7A) Tax shall not be charged under this section by reason only that property comprised in a settlement becomes excluded property by virtue of section 48(3A)(a) (holding in an authorised unit trust or a share in an open-ended investment company is excluded property unless settlor domiciled in UK when settlement made).
(2) The amendment made by this section is treated as having come into force on 16 October 2002.
177 Election to be treated as domiciled in United Kingdom
(1) IHTA 1984 is amended as follows.
(2) In section 267 (persons treated as domiciled in United Kingdom), at the end insert—
(5) In determining for the purposes of this section whether a person is, or at any time was, domiciled in the United Kingdom, sections 267ZA and 267ZB are to be ignored.
(3) After that section insert—
Election to be treated as domiciled in United Kingdom
267ZA (1) A person may, if condition A or B is met, elect to be treated for the purposes of this Act as domiciled in the United Kingdom (and not elsewhere).
(2) A person's personal representatives may, if condition B is met, elect for the person to be treated for the purposes of this Act as domiciled in the United Kingdom (and not elsewhere).
(3) Condition A is that, at any time on or after 6 April 2013 and during the period of 7 years ending with the date on which the election is made, the person had a spouse or civil partner who was domiciled in the United Kingdom.
(4) Condition B is that a person (“the deceased”) dies and, at any time on or after 6 April 2013 and within the period of 7 years ending with the date of death, the deceased was—
(a) domiciled in the United Kingdom, and
(b) the spouse or civil partner of the person who would, by virtue of the election, be treated as domiciled in the United Kingdom.
(5) An election under this section does not affect a person's domicile for the purposes of section 6(2) or (3) or 48(4).
(6) An election under this section is to be ignored—
(a) in interpreting any such provision as is mentioned in section 158(6), and
(b) in determining the effect of any qualifying double taxation relief arrangements in relation to a transfer of value by the person making the election.
(7) For the purposes of subsection (6)(b) a qualifying double taxation relief arrangement is an arrangement which is specified in an Order in Council made under section 158 before the coming into force of this section (other than by way of amendment by an Order made on or after the coming into force of this section).
(8) In determining for the purposes of this section whether a person making an election under this section is or was domiciled in the United Kingdom, section 267 is to be ignored.
Section 267ZA: further provision about election
267ZB (1) For the purposes of this section—
(a) references to a lifetime election are to an election made by virtue of section 267ZA(3), and
(b) references to a death election are to an election made by virtue of section 267ZA(4).
(2) A lifetime or death election is to be made by notice in writing to HMRC.
(3) A lifetime or death election is treated as having taken effect on a date specified, in accordance with subsection (4), in the notice.
(4) The date specified in a notice under subsection (3) must—
(a) be 6 April 2013 or a later date,
(b) be within the period of 7 years ending with—
(i) in the case of a lifetime election, the date on which the election is made, or
(ii) in the case of a death election, the date of the deceased's death, and
(c) meet the condition in subsection (5).
(5) The condition in this subsection is met by a date if, on the date—
(a) in the case of a lifetime election—
(i) the person making the election was married to, or in a civil partnership with, the spouse or civil partner, and
(ii) the spouse or civil partner was domiciled in the United Kingdom, or
(b) in the case of a death election—
(i) the person who is, by virtue of the election, to be treated as domiciled in the United Kingdom was married to, or in a civil partnership with, the deceased, and
(ii) the deceased was domiciled in the United Kingdom.
(6) A death election may only be made within 2 years of the death of the deceased or such longer period as an officer of Revenue and Customs may in the particular case allow.
(7) Subsection (8) applies if—
(a) a lifetime or death election is made,
(b) a disposition is made, or another event occurs, during the period beginning with the time when the election is treated by virtue of subsection (3) as having taken effect and ending at the time when the election is made, and
(c) the effect of the election being treated as having taken effect at that time is that the disposition or event gives rise to a transfer of value.
(8) This Act applies with the following modifications in relation to the transfer of value—
(a) subsections (1) and (6)(c) of section 216 have effect as if the period specified in subsection (6)(c) of that section were the period of 12 months from the end of the month in which the election is made, and
(b) sections 226 and 233 have effect as if the transfer were made at the time when the election is made.
(9) A lifetime or death election cannot be revoked.
(10) If a person who made an election under section 267ZA(1) is not resident in the United Kingdom for the purposes of income tax for a period of four successive tax years beginning at any time after the election is made, the election ceases to have effect at the end of that period.
178 Transfer to spouse or civil partner not domiciled in United Kingdom
(1) Section 18 of IHTA 1984 (transfers between spouses or civil partners) is amended as follows.
(2) In subsection (2) (transfer to spouse or civil partner not domiciled in United Kingdom), for “£55,000” substitute “ the exemption limit at the time of the transfer, ”.
(3) After subsection (2) insert—
(2A) For the purposes of subsection (2), the exemption limit is the amount shown in the second column of the first row of the Table in Schedule 1 (upper limit of portion of value charged at rate of nil per cent).
(4) The amendments made by this section have effect in relation to transfers of value made on or after 6 April 2013.
179 Fuel duties: rates of duty and rebates from 1 April 2013
(1) HODA 1979 is amended as follows.
(2) In section 6(1A) (main rates)—
(a) in paragraph (a) (unleaded petrol), for “£0.6097” substitute “ £0.5795 ”,
(b) in paragraph (aa) (aviation gasoline), for “£0.3966” substitute “ £0.3770 ”,
(c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.7069” substitute “ £0.6767 ”, and
(d) in paragraph (c) (heavy oil), for “£0.6097” substitute “ £0.5795 ”.
(3) In section 8(3) (road fuel gas)—
(a) in paragraph (a) (natural road fuel gas), for “£0.2907” substitute “ £0.2470 ”, and
(b) in paragraph (b) (other road fuel gas), for “£0.3734” substitute “ £0.3161 ”.
(4) In section 11(1) (rebate on heavy oil)—
(a) in paragraph (a) (fuel oil), for “£0.1126” substitute “ £0.1070 ”, and
(b) in paragraph (b) (gas oil), for “£0.1172” substitute “ £0.1114 ”.
(5) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1126” substitute “ £0.1070 ”.
(6) In section 14A(2) (rebate on certain biodiesel), for “£0.1172” substitute “ £0.1114 ”.
(7) The following instruments are revoked—
(a) Excise Duties (Surcharges or Rebates) (Hydrocarbon Oils etc) Order 2012 (S.I. 2012/3055), and
(b) Excise Duties (Road Fuel Gas) (Reliefs) Regulations 2012 (S.I. 2012/3056).
(8) The amendments and revocations made by this section are treated as having come into force on 1 April 2013.
(1) ALDA 1979 is amended as follows.
(2) In section 5 (rate of duty on spirits), for “£26.81” substitute “ £28.22 ”.
(3) In section 36(1AA) (rates of general beer duty)—
(a) in paragraph (za) (rate of duty on lower strength beer), for “£9.76” substitute “ £9.17 ”, and
(b) in paragraph (a) (standard rate of duty on beer), for “£19.51” substitute “ £19.12 ”.
(4) In section 37(4) (rate of high strength beer duty), for “£4.88” substitute “ £5.09 ”.
(5) In section 62(1A) (rates of duty on cider)—
(a) in paragraph (a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent), for “£245.32” substitute “ £258.23 ”,
(b) in paragraph (b) (rate of duty per hectolitre on cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£56.55” substitute “ £59.52 ”, and
(c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£37.68” substitute “ £39.66 ”.
(6) For the table in Schedule 1 substitute—
Table of rates of duty on wine and made-wine
PART 1 Wine or made-wine of a strength not exceeding 22 per cent
Description of wine or made-wine | Rates of duty per hectolitre £
Wine or made-wine of a strength not exceeding 4 per cent | 82.18
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent | 113.01
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling | 266.72
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent | 258.23
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent | 341.63
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent | 355.59
PART 2 Wine or made-wine of a strength exceeding 22 per cent
Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine £
Wine or made-wine of a strength exceeding 22 per cent | 28.22
.
(7) The amendments made by this section are treated as having come into force on 25 March 2013.
(1) For the table in Schedule 1 to TPDA 1979 substitute—
TABLE
1. Cigarettes | An amount equal to 16.5 per cent of the retail price plus £176.22 per thousand cigarettes
2. Cigars | £219.82 per kilogram
3. Hand-rolling tobacco | £172.74 per kilogram
4. Other smoking tobacco and chewing tobacco | £96.64 per kilogram
.
(2) The amendment made by this section is treated as having come into force at 6 pm on 20 March 2013.
(1) Section 1 of TPDA 1979 (tobacco products) is amended as follows.
(2) In subsection (1), omit “, but does not include herbal smoking products”.
(3) After that subsection insert—
(1A) But a product is not a tobacco product for the purposes of this Act if—
(a) the product does not contain any tobacco, and
(b) the Commissioners are satisfied that—
(i) the product is of a description that is used for medical purposes, and
(ii) the product is intended to be used exclusively for such purposes.
(4) In subsection (3), omit “but not including herbal smoking products”.
(5) Omit subsection (6).
(6) The amendments made by this section come into force on 1 January 2014.
(1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—
TABLE
Part of gross gaming yield | Rate
The first £2,242,500 | 15 per cent
The next £1,546,000 | 20 per cent
The next £2,707,500 | 30 per cent
The next £5,714,500 | 40 per cent
The remainder | 50 per cent
.
(2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2013.
(1) Section 20A of BGDA 1981 (combined bingo) is amended as follows.
(2) In subsection (3) for the words from the beginning to “second promoter”)—” substitute “Where money representing such payments (so far as they constituted stakes hazarded in the combined bingo) is paid in an accounting period by one promoter of the bingo (“the first promoter”) to another (“the second promoter”), to the extent that the money is used (directly or indirectly) to provide bingo winnings for combined bingo promoted by the second promoter—”.
(3) Omit subsection (4).
(4) 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.
185 Air passenger duty: rates of duty from 1 April 2013
(1) Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as follows.
(2) In subsection (3)—
(a) in paragraph (a) for “£65” substitute “ £67 ”, and
(b) in paragraph (b) for “£130” substitute “ £134 ”.
(3) In subsection (4)—
(a) in paragraph (a) for “£81” substitute “ £83 ”, and
(b) in paragraph (b) for “£162” substitute “ £166 ”.
(4) In subsection (4A)—
(a) in paragraph (a) for “£92” substitute “ £94 ”, and
(b) in paragraph (b) for “£184” substitute “ £188 ”.
(5) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2013.
(1) In section 38 of FA 1994 (accounting for and payment of duty) after subsection (2) insert—
(2A) Regulations may require a prescribed person to make, at prescribed times during a prescribed period, payments based on an estimate of what the person's liability will be for duty charged in the period.
(2B) The estimate and the amounts of the payments are to be determined in accordance with provision made by the regulations.
(2C) The payments are to be treated as being payments on account of the person's liability for duty charged in the period.
(2D) The regulations must make provision for dealing with cases where this results in an overpayment of duty by providing for amounts—
(a) to be repaid by the Commissioners, or
(b) to be treated as having been paid on account of the person's liability for duty charged in other periods,
or both.
(2) In Part 2 of Schedule 5A to FA 1994 (territories etc) at the appropriate place insert “ South Sudan ”.
(3) The amendment made by subsection (2) has effect in relation to the carriage of passengers beginning on or after 9 July 2011.
187 VED rates for light passenger vehicles, light goods vehicles, motorcycles etc
(1) Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
(2) In paragraph 1 (general)—
(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£220” substitute “ £225 ”, and
(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£135” substitute “ £140 ”.
(3) In paragraph 1B (graduated rates of duty for light passenger vehicles)—
(a) for the tables substitute—
TABLE 1 Rates payable on first vehicle licence for vehicle
CO2 emissions figure | Rate
(1) | (2) | (3) | (4)
Exceeding | Not exceeding | Reduced rate | Standard rate
g/km | g/km | £ | £
130 | 140 | 115 | 125
140 | 150 | 130 | 140
150 | 165 | 165 | 175
165 | 175 | 275 | 285
175 | 185 | 325 | 335
185 | 200 | 465 | 475
200 | 225 | 610 | 620
225 | 255 | 830 | 840
255 | 1055 | 1065
TABLE 2 Rates payable on any other vehicle licence for vehicle
CO2 emissions figure | Rate
(1) | (2) | (3) | (4)
Exceeding | Not exceeding | Reduced rate | Standard rate
g/km | g/km | £ | £
100 | 110 | 10 | 20
110 | 120 | 20 | 30
120 | 130 | 95 | 105
130 | 140 | 115 | 125
140 | 150 | 130 | 140
150 | 165 | 165 | 175
165 | 175 | 190 | 200
175 | 185 | 210 | 220
185 | 200 | 250 | 260
200 | 225 | 270 | 280
225 | 255 | 465 | 475
255 | 480 | 490
;
(b) in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
(a) in column (3), in the last two rows, “270” were substituted for “465” and “ 480 ”, and
(b) in column (4), in the last two rows, “280” were substituted for “475” and “ 490 ”.
(4) In paragraph 1J (VED rates for light goods vehicles)—
(a) in paragraph (a), for “£215” substitute “ £220 ”, and
(b) in paragraph (b), for “£135” substitute “ £140 ”.
(5) In paragraph 2(1) (VED rates for motorcycles)—
(a) in paragraph (a), for “£16” substitute “ £17 ”,
(b) in paragraph (b), for “£36” substitute “ £37 ”,
(c) in paragraph (c), for “£55” substitute “ £57 ”, and
(d) in paragraph (d), for “£76” substitute “ £78 ”.
(6) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2013.
(1) In section 33 of VERA 1994 (not exhibiting licence), omit subsections (1B) to (1D).
(2) After that section insert—
Not exhibiting licence: period of grace
33A (1) A person is not guilty of an offence under subsection (1) or (1A) of section 33 by using or keeping a vehicle on a public road during any of the following periods.
First registration The period of 14 days beginning with the day on which the vehicle is first registered under this Act.
Change of keeper The period of 14 days beginning with the day on which a new licence or nil licence is issued for the vehicle because of a change in the person by whom the vehicle is being kept.
Renewal etc. The period of 14 days following the time when a licence or nil licence for or in respect of the vehicle, or a relevant declaration applying to the vehicle, ceases to be in force, but only if an application for a licence or nil licence for or in respect of the vehicle to run from that time has been received before that time.
Replacement The period beginning with the time when a licence or nil licence that is in force for or in respect of the vehicle is delivered to the Secretary of State with an application for a replacement licence, and ending with the time when the replacement licence is obtained.
(2) For the purposes of this section—
(a) there is a relevant declaration applying to a vehicle if the particulars and declaration required to be furnished and made by regulations under section 22(1D) have been furnished and made in relation to the vehicle in accordance with the regulations, and
(b) the relevant declaration ceases to be in force if, after the particulars and declaration have been furnished and made the vehicle is used or kept on a public road (otherwise than under a trade licence).
(3) In consequence of the provision made by subsections (1) and (2) omit—
(a) section 147 of FA 2008, and
(b) in regulation 6 of the Road Vehicles (Registration and Licensing) Regulations 2002 (S.I. 2002/2742), paragraph (1) and, in paragraph (2), the words “Except where paragraph (1) applies,”.
(1) VERA 1994 is amended as follows.
(2) In section 7A (supplement payable on vehicle ceasing to be appropriately covered), in subsection (1A)(d) omit “within the immediately preceding period of 12 months”.
(3) In Schedule 2A (immobilisation, removal and disposal of vehicles), in paragraph 1(10)(b) omit “within the immediately preceding period of 12 months”.
191 Repayments of value added tax to health service bodies
(1) In section 41 of VATA 1994 (application to the Crown), in subsection (7), after “Board” insert “ and a clinical commissioning group, the Health and Social Care Information Centre, the National Health Service Commissioning Board and the National Institute for Health and Care Excellence ”.
(2) The amendment made by this section is treated as having come into force on 1 April 2013.
(1) Group 2 (installation of energy-saving materials) of Part 2 of Schedule 7A to VATA 1994 (reduced rate supplies of goods and services) is amended as follows.
(2) For items 1 and 2 substitute—
1 Supplies of services of installing energy-saving materials in residential accommodation.
2 Supplies of energy-saving materials by a person who installs those materials in residential accommodation.
(3) Omit Note 3 (meaning of “use for a relevant charitable purpose”).
(4) The amendments made by this section have effect in relation to supplies made on or after 1 August 2013.