Finance Bill

Session 2013 - 14
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 3 — Annual tax on enveloped dwellings
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Administration and payment of tax
156
Responsibility for collection and management
The Commissioners for Her Majesty’s Revenue and Customs are responsible
for the collection and management of annual tax on enveloped dwellings.
157
Annual tax on enveloped dwellings return
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(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
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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 122 (new dwellings) or section 123 (dwellings produced from other
dwellings)—
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(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.
(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”.
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158
Return of adjusted chargeable amount
(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
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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
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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 97 (interim relief) with
respect to the interest for the chargeable period, and
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(b)
the adjusted chargeable amount is greater than the amount charged
under section 96 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 97 with respect
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to the interest for the chargeable period, and

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(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”.
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159
Return to include self assessment
(1)
A return must include a self assessment.
(2)
In subsection (1) “return” means—
(a)
an annual charge on enveloped dwellings return, or
(b)
a return of the adjusted chargeable amount.
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(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 96 for
the period in respect of the interest, and
(b)
if the return includes a claim under section 97 (interim relief), the tax
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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 161(2).
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(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.
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Returns, enquiries, assessments and other administrative matters
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(1)
Schedule 31 contains provision about returns, enquiries and related matters.
(2)
The Treasury may by regulations—
(a)
make any amendments of Schedule 31 that they may at any time think
appropriate;
(b)
make any amendment of any other provision of this Part that may be
30
necessary in consequence of provision under paragraph (a).
161
Payment of tax
(1)
Tax charged on a person under section 96 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
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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 103(3)), the
amount of the difference must be paid not later than the filing date for the
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return of the adjusted chargeable amount under section 158.
(3)
Tax payable as a result of the amendment of a return must be paid—

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(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
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(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.
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Information and enforcement
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In Schedule 32—
(a)
Part 1 contains provision about information and inspection powers,
and
(b)
Part 2 contains provision about penalties.
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Collection and recovery of tax etc
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(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.
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Application of provisions
164
Companies
(1)
In this Part “company” means a body corporate but does not include—
(a)
a corporation sole, or
(b)
any partnership (see section 165(1)).
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(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.
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(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
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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

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(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
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(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.
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(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—
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(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
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for those purposes.
(10)
See also section 151 (public bodies) and section 152 (bodies established for
national purposes).
165
Partnerships
(1)
In this Part “partnership” means—
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(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
30
(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
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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;
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(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
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change remains a member after the change.

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(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
5
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
10
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.
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Supplementary provisions
166
Miscellaneous amendments and transitory provision
Schedule 33 contains—
(a)
miscellaneous amendments, and
(b)
provision about the chargeable period beginning on 1 April 2013.
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167
Orders and regulations
(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.
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(3)
Subsection (2) does not apply to an instrument containing only—
(a)
an order under section 98(5), or
(b)
regulations under section 154.
(4)
Subsection (2) does not apply to an instrument to which subsection (5) applies.
(5)
A statutory instrument containing (whether alone or with other provision)
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provision made under section 154(1)(b) or (c) or 160(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.
(6)
An order or regulations under this Part—
(a)
may make different provision for different purposes,
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(b)
may include consequential or transitional provisions or savings.