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116 | Section 115: supplementary |
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(1) | The reference in section 115(2)(b) to a chargeable interest being held for the |
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purposes of the same collective investment scheme includes a reference to a |
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person connected with the scheme being entitled to the interest. |
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(2) | For the purposes of section 115, there is private access between two dwellings |
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if the person entitled to possession of each dwelling is entitled, by reason of a |
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right of way or other interest in land, to have access to that person’s dwelling |
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from the other dwelling, without passing over any part of the building (or any |
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other land) in which a third party has an interest entitling that third party to |
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(3) | In subsection (2) “third party” means a person other than— |
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(a) | the persons entitled to possession of the dwellings mentioned in |
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(b) | persons connected with any of them. |
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(4) | The use condition mentioned in section 115(1)(d) is that each of the two |
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(a) | is occupied (or usually occupied) by a relevant individual, |
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(b) | is intended to be so occupied (or usually so occupied), or |
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(5) | In subsection (4) “relevant individual” means— |
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(a) | an individual connected with the company mentioned in section |
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(b) | an individual connected with the collective investment scheme |
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mentioned in section 115(2)(b), |
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(c) | an individual who occupies (or is to occupy) the dwelling concerned |
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otherwise than on commercial terms, or |
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(d) | an individual who is employed wholly or partly in connection with the |
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occupation by a person falling within any of paragraphs (a) to (c) of a |
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dwelling in the building, or provides services in connection with such |
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a person’s occupation of a dwelling in the building. |
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(6) | In this section references to the person entitled to possession of a dwelling are |
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to the person entitled to possession of the dwelling by reason of an estate or |
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interest held by that person. |
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Any structure (such as a terrace of houses or a pair of semi-detached houses) |
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that is composed of or includes dwellings is regarded as a building for the |
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purposes of sections 115 and 116. |
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Acquisitions and disposals |
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118 | Acquisitions and disposals of chargeable interests |
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(1) | References in this Part to the acquisition of a chargeable interest include any |
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acquisition however effected (including an acquisition effected by the act of |
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parties to a transaction, by order of a court or other authority, by or under any |
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statutory provision or by operation of law). |
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(2) | The surrender or release of a chargeable interest is— |
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(a) | an acquisition of that interest by any person whose interest or right is |
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benefited or enlarged by the transaction, and |
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(b) | a disposal by the person ceasing to be entitled to that interest. |
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(3) | The variation of a chargeable interest is— |
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(a) | an acquisition of a chargeable interest by the person benefiting from the |
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(b) | a disposal of a chargeable interest by the person whose interest is |
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subject to or limited by the variation. |
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119 | Date of acquisition or disposal |
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(1) | A person who acquires a chargeable interest in or over land that consists of or |
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includes a dwelling is treated for the purposes of this Part as acquiring the |
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interest on the effective date of the acquisition (and therefore as entitled to the |
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interest with effect from that date: see section 169). |
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(2) | A person who disposes of a chargeable interest in or over land that consists of |
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or includes a dwelling is treated for the purposes of this Part as ceasing to be |
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entitled to the interest on the effective date of the disposal (and therefore as not |
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being entitled to the interest on that day: see section 169). |
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(3) | If a person’s acquisition and disposal of a chargeable interest are completed on |
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the same day, then for the purposes of this Part— |
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(a) | the person’s acquisition of the interest is ignored if it precedes the |
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(b) | the person’s disposal of the interest is ignored if it precedes the |
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(4) | The effective date of an acquisition of a chargeable interest is— |
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(a) | the date on which the acquisition is completed, or |
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(b) | any alternative date the Commissioners for Her Majesty’s Revenue and |
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Customs may prescribe by regulations. |
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(5) | The effective date of a disposal of a chargeable interest is— |
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(a) | the date on which the disposal is completed, or |
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(b) | any alternative date the Commissioners for Her Majesty’s Revenue and |
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Customs may specify by regulations. |
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120 | Contract and conveyance: the purchaser |
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(1) | This section applies where a person (“P”) enters into a contract under which— |
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(a) | P is to acquire a relevant chargeable interest, and |
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(b) | the acquisition is to be completed by a conveyance. |
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(2) | P is not regarded as acquiring any chargeable interest by reason of entering |
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(3) | If the contract is substantially performed without having been completed, this |
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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. |
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(4) | Accordingly, where subsection (3) applies and the contract is subsequently |
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completed by a conveyance, that completion is not treated for the purposes of |
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section 100 (taxable value) as effecting the acquisition of a chargeable interest. |
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(5) | Where subsection (3) applies and— |
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(a) | the contract is afterwards rescinded or annulled, or |
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(b) | performance of the contract is for any other reason terminated before |
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the contract has been carried fully into effect, |
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| this Part has effect as if P had at the relevant time disposed of the chargeable |
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interest referred to in subsection (1)(a). |
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(6) | In subsection (5) “the relevant time” means— |
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(a) | the time when the rescission or annulment takes effect, or |
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(b) | (as the case requires) the time when performance of the contract ceases. |
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(7) | Where subsection (3) applies and the contract is afterwards varied (or partially |
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rescinded) so that the chargeable interest to be acquired under the contract is |
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not the same as the chargeable interest to which the contract originally related, |
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this Part (including subsection (3)) has effect as if the variation of the contract |
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(a) | the disposal by P of the chargeable interest referred to in subsection |
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(b) | the substantial performance of the contract, as varied. |
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(8) | If the parties to the contract proceed as if they had varied the contract in the |
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way mentioned in subsection (7) (without actually doing so), subsection (7) |
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applies as if they had actually made the corresponding variation in the terms |
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(a) | references to completion are to the completion of the acquisition |
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proposed, whether or not between the original parties; |
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(b) | “contract” includes any agreement; |
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(c) | “conveyance” includes any instrument; |
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(d) | “relevant chargeable interest” means a chargeable interest in or over |
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land that consists of or includes a dwelling; |
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(e) | “substantially performed” has the same meaning as in section 44 of FA |
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121 | Contract and conveyance: the vendor |
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(1) | This section applies where a person (“V”) enters into a contract under which— |
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(a) | V is to dispose of a relevant chargeable interest, and |
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(b) | the disposal is to be completed by a conveyance. |
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(2) | V is not regarded as disposing of a chargeable interest by reason of entering |
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(3) | If the contract is substantially performed without having been completed, this |
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Part has effect as if the substantial performance of the contract were the |
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completion of the disposal provided for by the contract. |
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(4) | Accordingly, where subsection (3) applies and the contract is subsequently |
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completed by a conveyance, that completion is not treated for the purposes of |
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section 100 as effecting the disposal of a chargeable interest. |
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(5) | Where subsection (3) applies and— |
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(a) | the contract is afterwards rescinded or annulled, or |
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(b) | performance of the contract is for any other reason terminated before |
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the contract has been carried fully into effect, |
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| this Part has effect as if V had at the relevant time re-acquired the chargeable |
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interest referred to in subsection (1)(a). |
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(6) | In subsection (5) “the relevant time” means— |
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(a) | the time when the rescission or annulment takes effect, or |
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(b) | (as the case requires) the time when performance of the contract ceases. |
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(7) | Where subsection (3) applies and the contract is afterwards varied (or partially |
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rescinded) so that the chargeable interest to be disposed of under the contract |
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is not the same as the chargeable interest to which the contract originally |
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related, this Part (including subsection (3)) has effect as if the variation of the |
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(a) | the re-acquisition by V of the chargeable interest referred to in |
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(b) | the substantial performance of the contract, as varied. |
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(8) | If the parties to the contract proceed as if they had varied the contract in the |
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way mentioned in subsection (7) (without actually doing so), subsection (7) |
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applies as if they had actually made the corresponding variation in the terms |
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(a) | references to completion are to the completion of the disposal |
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proposed, between the same parties, in substantial conformity with the |
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(b) | “contract” includes any agreement; |
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(c) | “conveyance” includes any instrument; |
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(d) | “relevant chargeable interest” means a chargeable interest in or over |
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land that consists of or includes a dwelling; |
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(e) | “substantially performed” has the same meaning as in section 44 of FA |
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New dwellings, conversions, demolition etc |
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(1) | Where a new dwelling is being or has been constructed (whether or not as part |
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of a larger building) the earlier of the following days is a valuation date in the |
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case of a single-dwelling interest in that dwelling— |
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(b) | the day on which the dwelling is first occupied. |
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(2) | The reference in subsection (1) to the construction of a new dwelling— |
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(a) | includes the production of a new dwelling by the alteration (whether |
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structural or otherwise) of an existing building, but |
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(b) | does not include a case to which section 123 (dwellings produced from |
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other dwellings) or section 126 (demolition and replacement: new |
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(3) | The reference in subsection (1) to the “completion day” is to the day on which |
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the new dwelling is treated as having come into existence for the purposes of— |
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(a) | Part 1 of the Local Government Finance Act 1992 (council tax: England |
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and Wales) (see section 17 of that Act), or |
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(b) | Part 2 of that Act (council tax: Scotland) (see section 83 of that Act), or |
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(c) | the Rates (Northern Ireland) Order 1977 (S.I. 1977/2157 (N.I. 28)) (see |
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Article 25B of that Order). |
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(4) | In this section “building” includes a part of a building. |
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123 | Dwellings produced from other dwellings |
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(1) | This section applies where an existing building that is a dwelling or dwellings |
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(“the old dwelling” or “the old dwellings”) becomes a different dwelling or |
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dwellings (“new” dwellings) as a result of structural alteration. |
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(2) | Any question as to whether or not a person has a single-dwelling interest at |
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any time either in the old dwelling or dwellings or in a new dwelling is |
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determined on the assumption that the old dwelling or dwellings cease to exist, |
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and any new dwelling come into existence, only when the conversion is |
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(3) | The day after the conversion is completed is a valuation date in the case of any |
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single-dwelling interest in a new dwelling. |
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(4) | References to when the conversion is completed are to the end of the day on |
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which the new dwelling is treated as having come into existence (or the first |
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day on which all the new dwellings are treated as having come into existence) |
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(a) | Part 1 of the Local Government Finance Act 1992 (council tax: England |
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and Wales) (see section 17 of that Act), or |
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(b) | Part 2 of that Act (council tax: Scotland) (see section 83 of that Act), or |
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(c) | the Rates (Northern Ireland) Order 1977 (S.I. 1977/2157 (N.I. 28)) (see |
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Article 25B of that Order). |
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(5) | In this section “building” includes a part of a building. |
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124 | Demolition of a dwelling |
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(1) | This section and sections 125 to 127 apply where a building that is a dwelling |
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(“the old dwelling”) is demolished after 1 April 2013. |
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(2) | Except so far as express provision to the contrary is made in sections 125 to 127, |
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any question as to whether a person has a single-dwelling interest in the |
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dwelling, and any question as to the taxable value of such an interest, is |
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determined as if the dwelling had not been demolished. |
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(3) | For the purposes of subsection (1) the demolition of a building is treated as |
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having occurred after 1 April 2013 if a day after 1 April 2013 is the first day on |
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(a) | the demolition has begun, and |
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(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. |
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