|
| |
|
| |
168 | Meaning of “chargeable day” and “within the charge” |
| |
(1) | Any day on which the conditions in section 91(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 |
| 5 |
person is “within the charge” with respect to a single-dwelling interest on that |
| |
| |
169 | References to the state of affairs “on” a 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 |
| 10 |
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 |
| 15 |
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% |
| 20 |
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). |
| 25 |
(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 |
| |
| 30 |
(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 |
| |
| 35 |
(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). |
| |
|
| |
|
| |
|
171 | Connected persons: cell companies |
| |
(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 |
| 5 |
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— |
| 10 |
(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 |
| |
| 15 |
(4) | The second condition is that the company’s articles of association, or other |
| |
document regulating it, establish an entity (by whatever name known) |
| |
| |
(a) | under the law under which the company is incorporated or formed, has |
| |
legal personality distinct from that of the company, and |
| 20 |
(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 |
| 25 |
(b) | an entity of the kind specified in subsection (4). |
| |
172 | General interpretation of Part 3 |
| |
| |
“chargeable day” (in relation to a single-dwelling interest) is to be read in |
| |
accordance with section 168; |
| 30 |
“chargeable interest” has the meaning given by section 104; |
| |
“the chargeable person” has the meaning given by section 93(2) or (3); |
| |
“closure notice” has the meaning given by paragraph 16 of Schedule 31; |
| |
“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); |
| 35 |
“company” has the meaning given by section 164(1); |
| |
“completion”, in Scotland, means— |
| |
(a) | in relation to a lease, when it is executed by the parties (that is |
| |
to say, by signing) or constituted by any means, |
| |
(b) | in relation to any other transaction, the settlement of the |
| 40 |
| |
“discovery assessment” has the meaning given by paragraph 21 of |
| |
| |
“EEA UCITS” has the same meaning as in Part 17 of the Financial Services |
| |
and Markets Act 2000 (see section 237 of that Act); |
| 45 |
“excluded rents” has the meaning given by section 131(6); |
| |
|
| |
|
| |
|
“farming” has the meaning given by section 146(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 31; |
| |
“financial institution” has the meaning given by section 141 (except where |
| 5 |
| |
“HMRC” means Her Majesty’s Revenue and Customs; |
| |
“HMRC determination” has the meaning given by paragraph 18 of |
| |
| |
“jointly entitled” means— |
| 10 |
(a) | in England and Wales, beneficially entitled as joint tenants or |
| |
| |
(b) | in Scotland, entitled as joint owners or owners in common, |
| |
(c) | in Northern Ireland, beneficially entitled as joint tenants, |
| |
tenants in common or coparceners; |
| 15 |
| |
(a) | buildings and structures, and |
| |
(b) | land covered by water; |
| |
“market value” has the meaning given by section 95(8); |
| |
“notice of enquiry” has the meaning given by paragraph 8 of Schedule 31; |
| 20 |
“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 |
| |
| |
“participant”, in relation to a collective investment scheme, has the |
| |
meaning given by section 95(7); |
| 25 |
“partnership” has the meaning given by section 165; |
| |
“property development trade” has the meaning given by section 136(4); |
| |
“property rental business” has the meaning given by section 131(4); |
| |
“property trading business” has the meaning given by section 139(3); |
| |
“qualifying property rental business” has the meaning given by section |
| 30 |
| |
“self assessment” has the meaning given by section 159(2); |
| |
“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); |
| 35 |
“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). |
| |
| |
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- |
| 40 |
dwelling interest, are to be read in accordance with section 102; |
| |
references to an “annual tax on enveloped dwellings return” are to be read |
| |
in accordance with section 157(4); |
| |
references to the “daily amount” for a day are to be read in accordance |
| |
| 45 |
references to “delivery”, in relation to an annual tax on enveloped |
| |
dwellings return, are to be read in accordance with paragraph 2 of |
| |
| |
references to the “effective date” of an acquisition are to be read in |
| |
accordance with section 119(4); |
| 50 |
|
| |
|
| |
|
references to the “effective date” of a disposal are to be read in accordance |
| |
| |
references to a “major interest” in land are to be read in accordance with |
| |
| |
references to a “return of the adjusted chargeable amount” are to be read |
| 5 |
in accordance with section 158(6); |
| |
references to meeting the “ownership condition” are to be read in |
| |
accordance with section 91(4) to (6); |
| |
references to being “within the charge” with respect to a single-dwelling |
| |
interest are to be read in accordance with section 168. |
| 10 |
| |
Excise duties and other taxes |
| |
| |
173 | Open- ended investment companies and authorised unit trusts |
| |
(1) | In section 65 of IHTA 1984 (settlements without interests in possession etc: |
| 15 |
charge when property ceases to be relevant property etc), after subsection (7) |
| |
| |
“(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 |
| 20 |
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 |
| |
| |
174 | Treatment of liabilities for inheritance tax purposes |
| 25 |
Schedule 34 makes provision in relation to the treatment of liabilities for the |
| |
purposes of inheritance tax. |
| |
175 | 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 |
| 30 |
| |
“(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— |
| 35 |
“267ZA | Election to be treated as domiciled in United Kingdom |
| |
(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 |
| |
| |
|
| |
|
| |
|
(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). |
| |
| |
(a) | the person’s spouse or civil partner is domiciled in the United |
| 5 |
Kingdom at the time the election is made, and |
| |
(b) | the person is not domiciled in the United Kingdom at that time. |
| |
| |
(a) | the person’s spouse or civil partner died on or after 6 April 2013 |
| |
and was domiciled in the United Kingdom at the time of death, |
| 10 |
| |
(b) | the person was not domiciled in the United Kingdom at that |
| |
| |
(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). |
| 15 |
(6) | An election under this section is to be ignored— |
| |
(a) | in interpreting any such provision as is mentioned in section |
| |
| |
(b) | in determining the effect of any qualifying double taxation relief |
| |
arrangements in relation to a transfer of value by the person |
| 20 |
| |
(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 |
| 25 |
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. |
| |
267ZB | Section 267ZA: further provision about election |
| 30 |
(1) | For the purposes of this section— |
| |
(a) | references to a lifetime election are to an election made by virtue |
| |
| |
(b) | references to a death election are to an election made by virtue |
| |
| 35 |
(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 (5), in the notice. |
| |
(4) | Where no date is specified in accordance with subsection (5)— |
| |
(a) | a lifetime election takes effect on the date it is made, and |
| 40 |
(b) | a death election is treated as having taken effect immediately |
| |
before any transfer treated as made by section 4 immediately |
| |
before the death of the spouse or civil partner. |
| |
(5) | The date specified in a notice under subsection (3) must— |
| |
(a) | be 6 April 2013 or a later date, |
| 45 |
|
| |
|
| |
|
(b) | be within the period of 7 years ending with— |
| |
(i) | in the case of a lifetime election, the date on which the |
| |
| |
(ii) | in the case of a death election, the date of the spouse or |
| |
civil partner’s death, and |
| 5 |
(c) | meet the condition in subsection (6). |
| |
(6) | The condition in this subsection is met by a date (“the date concerned”) |
| |
if, throughout the relevant period— |
| |
(a) | the person making the election was married to, or in a civil |
| |
partnership with, the spouse or civil partner, and |
| 10 |
(b) | the spouse or civil partner was domiciled in the United |
| |
| |
(7) | In subsection (6) the “relevant period” means— |
| |
(a) | in the case of a lifetime election, the period beginning with the |
| |
date concerned and ending with the date on which the election |
| 15 |
| |
(b) | in the case of a death election, the period beginning with the |
| |
date concerned and ending immediately before the death of the |
| |
| |
(8) | A death election may only be made within 2 years of the death of the |
| 20 |
spouse or civil partner or such longer period as an officer of Revenue |
| |
and Customs may in the particular case allow. |
| |
(9) | Subsection (10) applies if— |
| |
(a) | a lifetime or death election is made, |
| |
(b) | a disposition is made, or another event occurs, during the |
| 25 |
period beginning with the time when the election is treated by |
| |
virtue of subsection (3) or (4)(b) 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 |
| 30 |
| |
(10) | This Act applies with the following modifications in relation to the |
| |
| |
(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 |
| 35 |
period of 12 months from the end of the month in which the |
| |
| |
(b) | sections 226 and 233 have effect as if the transfer were made at |
| |
the time when the election is made. |
| |
(11) | A lifetime or death election cannot be revoked. |
| 40 |
(12) | If a person who made a lifetime or death election 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.” |
| |
|
| |
|