Finance Bill

Session 2013 - 14
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Finance Bill

Finance Bill
Part 3 — Annual tax on enveloped dwellings
70

(a)
the person’s acquisition of the interest is ignored if it precedes the
disposal;
(b)
the person’s disposal of the interest is ignored if it precedes the
acquisition.
(4)
The effective date of an acquisition of a chargeable interest is—
5
(a)
the date on which the acquisition is completed, or
(b)
any alternative date the Commissioners for Her Majesty’s Revenue and
Customs may prescribe by regulations.
(5)
The effective date of a disposal of a chargeable interest is—
(a)
the date on which the disposal is completed, or
10
(b)
any alternative date the Commissioners for Her Majesty’s Revenue and
Customs may specify by regulations.
120
Contract and conveyance: the purchaser
(1)
This section applies where a person (“P”) enters into a contract under which—
(a)
P is to acquire a relevant chargeable interest, and
15
(b)
the acquisition is to be completed by a conveyance.
(2)
P is not regarded as acquiring any chargeable interest by reason of entering
into the contract.
(3)
If the contract is substantially performed without having been completed, this
Part has effect as if the substantial performance of the contract were the
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completion of the acquisition provided for by the contract.
(4)
Accordingly, where subsection (3) applies and the contract is subsequently
completed by a conveyance, that completion is not treated for the purposes of
section 99 (taxable value) as effecting the acquisition of a chargeable interest.
(5)
Where subsection (3) applies and—
25
(a)
the contract is afterwards rescinded or annulled, or
(b)
performance of the contract is for any other reason terminated before
the contract has been carried fully into effect,

this Part has effect as if P had at the relevant time disposed of the chargeable
interest referred to in subsection (1)(a).
30
(6)
In subsection (5) “the relevant time” means—
(a)
the time when the rescission or annulment takes effect, or
(b)
(as the case requires) the time when performance of the contract ceases.
(7)
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rescinded) so that the chargeable interest to be acquired under the contract is
35
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—
(a)
the disposal by P of the chargeable interest referred to in subsection
(1)(a), and
40
(b)
the substantial performance of the contract, as varied.
(8)
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.
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Finance Bill
Part 3 — Annual tax on enveloped dwellings
71

(9)
In this section—
(a)
references to completion are to the completion of the acquisition
proposed, whether or not between the original parties;
(b)
“contract” includes any agreement;
(c)
“conveyance” includes any instrument;
5
(d)
“relevant chargeable interest” means a chargeable interest in or over
land that consists of or includes a dwelling;
(e)
“substantially performed” has the same meaning as in section 44 of FA
2003.
121
Contract and conveyance: the vendor
10
(1)
This section applies where a person (“V”) enters into a contract under which—
(a)
V is to dispose of a relevant chargeable interest, and
(b)
the disposal is to be completed by a conveyance.
(2)
V is not regarded as disposing of a chargeable interest by reason of entering
into the contract.
15
(3)
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.
(4)
Accordingly, where subsection (3) applies and the contract is subsequently
completed by a conveyance, that completion is not treated for the purposes of
20
section 99 as effecting the disposal of a chargeable interest.
(5)
Where subsection (3) applies and—
(a)
the contract is afterwards rescinded or annulled, or
(b)
performance of the contract is for any other reason terminated before
the contract has been carried fully into effect,
25

this Part has effect as if V had at the relevant time re-acquired the chargeable
interest referred to in subsection (1)(a).
(6)
In subsection (5) “the relevant time” means—
(a)
the time when the rescission or annulment takes effect, or
(b)
(as the case requires) the time when performance of the contract ceases.
30
(7)
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—
35
(a)
the re-acquisition by V of the chargeable interest referred to in
subsection (1)(a), and
(b)
the substantial performance of the contract, as varied.
(8)
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)
40
applies as if they had actually made the corresponding variation in the terms
of the contract.
(9)
In this section—

Finance Bill
Part 3 — Annual tax on enveloped dwellings
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(a)
references to completion are to the completion of the disposal
proposed, between the same parties, in substantial conformity with the
contract;
(b)
“contract” includes any agreement;
(c)
“conveyance” includes any instrument;
5
(d)
“relevant chargeable interest” means a chargeable interest in or over
land that consists of or includes a dwelling;
(e)
“substantially performed” has the same meaning as in section 44 of FA
2003.
New dwellings, conversions, demolition etc
10
122
New dwellings
(1)
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—
(a)
the completion day;
15
(b)
the day on which the dwelling is first occupied.
(2)
The reference in subsection (1) to the construction of a new dwelling—
(a)
includes the production of a new dwelling by the alteration (whether
structural or otherwise) of an existing building, but
(b)
does not include a case to which section 123 (dwellings produced from
20
other dwellings) or section 126 (demolition and replacement: new
dwellings) applies.
(3)
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—
(a)
Part 1 of the Local Government Finance Act 1992 (council tax: England
25
and Wales) (see section 17 of that Act), or
(b)
Part 2 of that Act (council tax: Scotland) (see section 83 of that Act), or
(c)
the Rates (Northern Ireland) Order 1977 (S.I. 1977/2157 (N.I. 28)) (see
Article 25B of that Order).
(4)
In this section “building” includes a part of a building.
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123
Dwellings produced from other dwellings
(1)
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.
(2)
Any question as to whether or not a person has a single-dwelling interest at
35
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.
(3)
The day after the conversion is completed is a valuation date in the case of any
40
single-dwelling interest in a new dwelling.
(4)
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

Finance Bill
Part 3 — Annual tax on enveloped dwellings
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day on which all the new dwellings are treated as having come into existence)
for the purposes of—
(a)
Part 1 of the Local Government Finance Act 1992 (council tax: England
and Wales) (see section 17 of that Act), or
(b)
Part 2 of that Act (council tax: Scotland) (see section 83 of that Act), or
5
(c)
the Rates (Northern Ireland) Order 1977 (S.I. 1977/2157 (N.I. 28)) (see
Article 25B of that Order).
(5)
In this section “building” includes a part of a building.
124
Demolition of a dwelling
(1)
This section and sections 125 to 127 apply where a building that is a dwelling
10
(“the old dwelling”) is demolished after 1 April 2013.
(2)
Except so far as express provision to the contrary is made in sections 125 to 127,
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.
15
(3)
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—
(a)
the demolition has begun, and
(b)
as a result, the building is no longer suitable for use as a dwelling.
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(4)
In this section “building” includes a part of a building.
125
Demolition without replacement
(1)
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
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dwellings on the site of the old dwelling.
(2)
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).
(3)
That day is the first day on which—
30
(a)
the demolition has begun, and
(b)
as a result, the building in question is no longer suitable for use as a
dwelling.
(4)
A notification under subsection (1) must be given—
(a)
in an annual tax on enveloped dwellings return, or
35
(b)
by amending such a return.
(5)
In this section—
(a)
“building” includes part of a building;
(b)
“the site of the old dwelling” means the land on which the dwelling
stood and that counted as part of the dwelling;
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(c)
the reference to the construction of a dwelling or dwellings on that site
is to the construction of a dwelling or dwellings wholly or partly on the
site.