|
| |
|
(a) | on a commercial basis, and |
| |
(b) | with a view to profit. |
| |
| |
“farming” has the same meaning as in the Corporation Tax Acts (see |
| |
section 1125 of CTA 2010), except that in this section “farming” includes |
| 5 |
| |
“market gardening” has the same meaning as in the Corporation Tax Acts |
| |
(see section 1125(5) of CTA 2010). |
| |
147 | “Farm worker” and “former long-serving farm worker” |
| |
(1) | An individual is a “farm worker” in relation to the qualifying trade of farming |
| 10 |
mentioned in section 146(1) at any time when the individual has a substantial |
| |
| |
(a) | the day-to-day work of the trade, or |
| |
(b) | the direction and control of the conduct of the trade. |
| |
(2) | Where section 146 applies, an individual occupying the farmhouse on the day |
| 15 |
mentioned in section 146(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— |
| |
(a) | a qualifying period of 3 or more years, or |
| |
(b) | qualifying periods together amounting to 3 or more years within a 5 |
| 20 |
| |
(3) | In subsection (2) “qualifying period” means a period throughout which— |
| |
(a) | the individual occupied the farmhouse for the purposes of the trade, |
| |
(b) | the land of which the farmhouse forms part was occupied for the |
| |
| 25 |
(c) | the trade was carried on by— |
| |
(i) | a person who is entitled to the single-dwelling interest in the |
| |
farmhouse on the day mentioned in section 146(1), or |
| |
(ii) | a person connected with such a person, and |
| |
(d) | a person who is entitled to the single-dwelling interest in the farmhouse |
| 30 |
on the day mentioned in section 146(1) was entitled to that interest. |
| |
(4) | A person occupying part of a dwelling is regarded as occupying the dwelling |
| |
for the purposes of this section and section 146. |
| |
| |
(1) | A day in a chargeable period is relievable in relation to a single-dwelling |
| 35 |
| |
(a) | a charitable company is entitled to the interest, and |
| |
(b) | the interest is held by the charitable company for qualifying charitable |
| |
| |
(2) | The interest is “held for qualifying charitable purposes” if it is held— |
| 40 |
(a) | for use in furtherance of the charitable purposes of the charitable |
| |
company or of another charity, or |
| |
(b) | as an investment from which the profits are (or are to be) applied to the |
| |
charitable purposes of the charitable company. |
| |
|
| |
|
| |
|
(3) | A day is not relievable by virtue of subsection (1) if on that day an individual |
| |
who is a substantial donor, or the associate of a substantial donor, is permitted |
| |
| |
(4) | Where subsection (3) applies in relation to a day in a chargeable period, this |
| |
section has effect in relation to the charitable company as if the individual had |
| 5 |
been permitted to occupy the dwelling throughout— |
| |
(a) | that chargeable period, |
| |
(b) | the preceding chargeable period, and |
| |
(c) | the 3 chargeable periods following the period mentioned in paragraph |
| |
| 10 |
(5) | For the purposes of this section an individual is a substantial donor to a |
| |
charitable company for a chargeable period if— |
| |
(a) | the charitable company receives gifts of at least £50,000 from the |
| |
individual in the chargeable period, or |
| |
(b) | the charitable company receives gifts of at least £150,000 from the |
| 15 |
individual in a period of 6 years in which the chargeable period wholly |
| |
| |
(6) | If an individual is a substantial donor to a charitable company for a chargeable |
| |
period (“the affected period”) as a result of subsection (5)(a) or (b), the |
| |
individual is also a substantial donor to the charitable company for— |
| 20 |
(a) | the chargeable period preceding the affected period, and |
| |
(b) | each of the 5 chargeable periods following the affected period. |
| |
(7) | For the purposes of subsection (3) it does not matter whether the conditions as |
| |
a result of which the individual is a substantial donor for the chargeable period |
| |
are met before or on or after the day in question. |
| 25 |
(8) | For the purposes of subsection (5) a charitable company and any other charities |
| |
with which it is connected are to be treated as a single charitable company. |
| |
(9) | For the purposes of subsection (8)— |
| |
(a) | “connected” means connected in a matter relating to the structure, |
| |
administration or control of the charity, and |
| 30 |
(b) | section 170 does not apply. |
| |
149 | Section 148: supplementary |
| |
(1) | In section 148 “associate”, in relation to a substantial donor to a charitable |
| |
company, means any of the following— |
| |
(a) | an individual (“a connected person”) who is connected with the |
| 35 |
| |
(b) | an individual who is the settlor in relation to a settlement of which a |
| |
trustee is (in the capacity of trustee) connected with the substantial |
| |
| |
(c) | the spouse or civil partner of a connected person or of a relevant settlor, |
| 40 |
(d) | a relative of a connected person or of a relevant settlor, or the spouse or |
| |
civil partner of a relative of a connected person or of a relevant settlor, |
| |
(e) | a relative of the spouse or civil partner of a connected person or of a |
| |
| |
(f) | the spouse or civil partner of a person falling within paragraph (e). |
| 45 |
| |
|
| |
|
| |
|
“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). |
| |
(3) | In subsection (1)(b) “trustee” is to be read in accordance with section 1123(3) of |
| |
CTA 2010 (“connected persons”: supplementary). |
| 5 |
(4) | In section 148 a reference to a gift of a specified amount includes a reference to |
| |
a non-monetary gift of that value. |
| |
(5) | For the purposes of section 148 occupation of any part of a dwelling is regarded |
| |
as occupation of the dwelling. |
| |
(6) | The power of the Treasury under section 510(3) of CTA 2010 to vary by |
| 10 |
regulations a sum, or a period of time, specified in section 502(2) of that Act |
| |
includes power to vary a sum, or a period of time, specified in section 148(5); |
| |
and under section 510(3), as extended by this section, different provision may |
| |
be made for the purposes of section 148 and other purposes. |
| |
150 | Providers of social housing |
| 15 |
(1) | A day in a chargeable period is relievable in relation to a single-dwelling |
| |
| |
(a) | a profit-making registered provider of social housing (P) is entitled to |
| |
| |
(b) | P’s acquisition of the interest (or of any part of the interest) was funded |
| 20 |
with the assistance of public subsidy. |
| |
(2) | A day in a chargeable period is relievable in relation to a single-dwelling |
| |
| |
(a) | a relevant housing provider (that is, a non-profit registered provider of |
| |
social housing or a registered social landlord) is entitled to the interest, |
| 25 |
| |
(b) | the condition in subsection (3) is met. |
| |
(3) | The condition mentioned in subsection (2) is that— |
| |
(a) | the relevant housing provider is controlled by its tenants, |
| |
(b) | the person from whom the relevant housing provider acquired the |
| 30 |
interest (or any part of the interest) is a qualifying body, or |
| |
(c) | the relevant housing provider’s acquisition of the interest (or of any |
| |
part of the interest) was funded with the assistance of a public subsidy. |
| |
| |
(a) | the reference to a relevant housing provider “controlled by its tenants” |
| 35 |
is to be read in accordance with subsection (2) of section 71 of FA 2003; |
| |
(b) | “qualifying body” has the meaning given by subsection (3) of that |
| |
| |
(c) | “public subsidy” has the same meaning as in that section. |
| |
| 40 |
| |
(1) | A public body is not regarded as a company for the purposes of this Part. |
| |
|
| |
|
| |
|
| |
(a) | “public body” means any body corporate that is a public body for the |
| |
purposes of section 66 of FA 2003, and |
| |
(b) | references to a public body accordingly include a company such as is |
| |
mentioned in subsection (5) of that section (companies wholly owned |
| 5 |
| |
(3) | 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. |
| |
(4) | In paragraph (b) of subsection (2) “company” means a company as defined by |
| 10 |
section 1 of the Companies Act 2006 (and subsection (1) is to be ignored in |
| |
interpreting that paragraph). |
| |
152 | Bodies established for national purposes |
| |
(1) | A body listed in subsection (2) is not regarded as a company for the purposes |
| |
| 15 |
| |
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. |
| 20 |
153 | Dwelling conditionally exempt from inheritance tax |
| |
(1) | Subsection (2) applies to a single-dwelling interest if— |
| |
(a) | the whole or part of the dwelling has been designated under section 31 |
| |
of IHTA 1984 (buildings of outstanding historic or architectural interest |
| |
| 25 |
(b) | an undertaking has been made with respect to the dwelling under |
| |
section 30 of that Act (conditionally exempt transfers), and |
| |
(c) | a transfer of value is exempt from inheritance tax by virtue of that |
| |
designation and that undertaking. |
| |
(2) | The taxable value of the single-dwelling interest on any day is taken to be zero |
| 30 |
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. |
| |
(3) | Subsection (4) applies to a single-dwelling interest if— |
| |
(a) | the whole or part of the dwelling has been designated under section 31 |
| |
| 35 |
(b) | an undertaking has been made with respect to the dwelling under |
| |
section 78 of that Act (settled property: conditionally exempt |
| |
| |
(c) | a transfer of property or other event is a conditionally exempt occasion |
| |
by virtue of that designation and that undertaking. |
| 40 |
(4) | 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. |
| |
| |
|
| |
|
| |
|
“chargeable event” means an event which is a chargeable event under |
| |
| |
“conditionally exempt occasion” is to be read in accordance with section |
| |
| |
“transfer of value” has the same meaning as in that Act. |
| 5 |
| |
154 | Modification of reliefs |
| |
(1) | The Treasury may by regulations— |
| |
(a) | amend this Part for the purpose of providing further relief, or further |
| |
exemptions, from tax (whether by modifying an existing relief or |
| 10 |
| |
(b) | amend or repeal any of sections 130 to 153 for purposes not falling |
| |
| |
(c) | make any amendment of any other provision of this Part that may be |
| |
necessary in consequence of provision under paragraph (b). |
| 15 |
| |
(a) | the reference to providing further relief from tax includes the provision |
| |
of relief for additional persons or categories of person or in additional |
| |
| |
(b) | the reference to providing further exemptions from tax includes the |
| 20 |
provision of exemptions for additional persons or categories of person |
| |
or in additional cases or circumstances. |
| |
Alternative property finance |
| |
155 | Land sold to financial institution and leased to person |
| |
(1) | This section applies where— |
| 25 |
(a) | section 71A of FA 2003 (land sold to financial institution and leased to |
| |
person) or section 72 of that Act (land in Scotland sold to financial |
| |
institution and leased to person) applies in relation to arrangements |
| |
entered into between a financial institution and another person (“the |
| |
| 30 |
(b) | the land in which the institution purchases a major interest under the |
| |
first transaction consists of or includes one or more dwellings (or parts |
| |
| |
(2) | If the lessee is a company, this Part has effect in relation to times when the |
| |
arrangements are in operation as if— |
| 35 |
(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 |
| |
| |
(3) | The reference in subsection (2) to times when the arrangements are in |
| 40 |
operation is to times when— |
| |
(a) | the lessee holds the leasehold interest granted to it under the second |
| |
| |
|
| |
|
| |
|
(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 |
| |
| |
(4) | A company 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 |
| 5 |
question the company 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— |
| 10 |
(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 |
| |
| 15 |
(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 |
| |
| |
(b) | the interest purchased under the first transaction (or that interest except |
| 20 |
so far as transferred by a further transaction) is held by a financial |
| |
| |
| |
“financial institution” has the meaning given by section 73BA of FA 2003; |
| |
“the first transaction” has the same meaning as in section 71A or (as the |
| 25 |
case requires) 72 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 |
| |
| |
“the second transaction” has the same meaning as in section 71A or (as the |
| 30 |
case requires) 72 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 (5) and (6) to the |
| |
lessee are to be read, in relation to times after the death of the lessee, as |
| 35 |
references to the lessee’s personal representatives. |
| |
(10) | In relation to transactions in relation to which section 29 of the Scotland Act |
| |
2012 (disapplication of UK stamp duty land tax) has effect, this section has |
| |
| |
(a) | in subsection (1) the words “or section 72 of that Act (land in Scotland |
| 40 |
sold to financial institution and leased to person)” were omitted, and |
| |
(b) | in subsection (7) the words, “or (as the case requires) section 72” were |
| |
| |
|
| |
|