|
| |
|
(4) | The chargeable consideration for the acquisition mentioned in subsection (1)(a) |
| |
is taken to include the chargeable consideration for any linked acquisition of a |
| |
chargeable interest in or over the same dwelling. |
| |
(5) | The chargeable consideration for the transaction mentioned in subsection |
| |
(1)(b) is taken to include the chargeable consideration for any linked disposal |
| 5 |
of part (but not the whole) of the single-dwelling interest concerned. |
| |
(6) | For the purposes of subsection (2) the market value of the chargeable interest |
| |
acquired is taken to be the sum of the market values of that chargeable interest |
| |
and any chargeable interest in or over the same dwelling that is acquired in a |
| |
| 10 |
(7) | For the purposes of subsection (3) the market value of the part of the single- |
| |
dwelling interest disposed of is taken to be the sum of the market values of that |
| |
chargeable interest and any chargeable interest in or over the same dwelling |
| |
that is disposed of in a linked transaction. |
| |
(8) | For the purposes of this section two or more transactions are “linked” if they |
| 15 |
form part of a single scheme, arrangement or series of transactions between the |
| |
same vendor and purchaser or, in either case, persons connected with them. |
| |
(9) | In this section “chargeable consideration”, “purchaser” and “vendor” have the |
| |
same meaning as in Part 4 of FA 2003. |
| |
(10) | In this section references to a disposal of part of a single-dwelling interest |
| 20 |
include the grant of a chargeable interest out of the single-dwelling interest. |
| |
| |
Tax in respect of a given single-dwelling interest is charged only once for any |
| |
chargeable day even if more than one person is “the chargeable person” with |
| |
respect to the tax charged. |
| 25 |
Adjustment of amount charged |
| |
105 | “Adjusted chargeable amount” |
| |
(1) | In relation to a person on whom tax is charged for a chargeable period with |
| |
respect to a single-dwelling interest, the “adjusted chargeable amount” is the |
| |
total of the daily amounts for all the days in the period on which the chargeable |
| 30 |
person is within the charge with respect to the interest. |
| |
(2) | The daily amount for any such day (“the actual day”) is—![equation: cross[over[num[1.0000000000000000,"1"],char[Y]],char[A]]](missing.gif) |
| |
| |
| “Y” is the number of days in the chargeable period; |
| |
| “A” is the annual chargeable amount for the single-dwelling interest, |
| 35 |
determined (under section 99(4)) on the basis that the actual day is the relevant |
| |
| |
|
| |
|
| |
|
106 | Adjustment of amount chargeable |
| |
(1) | Where tax is charged for a chargeable period with respect to a single-dwelling |
| |
interest and the adjusted chargeable amount is greater than the initial charged |
| |
amount, the amount of tax charged is taken to be increased to the adjusted |
| |
| 5 |
(2) | In this section “the initial charged amount” means the amount of tax charged |
| |
under section 99 for the period in respect of the interest. |
| |
(3) | Subsection (4) applies where— |
| |
(a) | tax is charged for a chargeable period with respect to a single-dwelling |
| |
| 10 |
(b) | the adjusted chargeable amount is less than the initial charged amount, |
| |
| |
(c) | a claim for relief is made under this subsection. |
| |
(4) | The amount of tax charged for the period with respect to the interest is taken |
| |
to be reduced (at the end of the chargeable period) to the adjusted chargeable |
| 15 |
| |
(5) | Relief under subsection (3) must be claimed— |
| |
(a) | in an annual tax on enveloped dwellings return, or |
| |
(b) | by amending an annual tax on enveloped dwellings return. |
| |
(6) | The claim must be delivered by the end of the chargeable period following the |
| 20 |
one to which the claim relates. |
| |
(7) | Relief under subsection (3) may be given by repayment of tax or otherwise. |
| |
(8) | See also section 160 (return of adjusted amount chargeable); and see section |
| |
163(2) for provision about payment of additional tax by reference to the |
| |
adjusted chargeable amount. |
| 25 |
Chargeable interests and “single-dwelling interest” |
| |
| |
(1) | In this Part “chargeable interest” means— |
| |
(a) | an estate, interest, right or power in or over land in the United |
| |
| 30 |
(b) | the benefit of an obligation, restriction or condition affecting the value |
| |
of any such estate, interest, right or power. |
| |
(2) | Where two or more persons are jointly entitled to a chargeable interest the |
| |
chargeable interest is not regarded, for the purposes of this Part, as consisting |
| |
of separate interests corresponding to the shares (if any) that those persons |
| 35 |
have by virtue of their joint entitlement. |
| |
(3) | An exempt interest is not a chargeable interest for the purposes of this Part. |
| |
(4) | The following are exempt interests— |
| |
(a) | any security interest; |
| |
(b) | a licence to use or occupy land; |
| 40 |
(c) | in England and Wales or Northern Ireland, a tenancy at will. |
| |
|
| |
|
| |
|
(5) | In subsection (4) “security interest” means an interest or right (other than a |
| |
rentcharge) held for the purpose of securing the payment of money or the |
| |
performance of any other obligation. |
| |
(6) | In the application of this Part in Scotland the reference in subsection (5) to a |
| |
rentcharge is to be read as a reference to a feu duty or a payment mentioned in |
| 5 |
section 56(1) of the Abolition of Feudal Tenure etc (Scotland) Act 2000 (asp 5). |
| |
(7) | The Treasury may by regulations provide that any other description of interest |
| |
or right in or over a dwelling is an exempt interest. |
| |
108 | Meaning of “single-dwelling interest” |
| |
(1) | References in this Part to a “single-dwelling interest” are to be read in |
| 10 |
accordance with this section. |
| |
(2) | A chargeable interest that is exclusively in or over land consisting (on any day) |
| |
of a single dwelling is a single-dwelling interest (on that day). |
| |
(3) | Where a person is entitled to a chargeable interest that is exclusively in or over |
| |
land consisting (on any day) of two or more single dwellings— |
| 15 |
(a) | provisions referring to a “single-dwelling interest” operate as if the |
| |
person had (on that day) a separate chargeable interest in or over each |
| |
| |
(b) | the chargeable interest in or over each dwelling is therefore a single- |
| |
| 20 |
(4) | Where a person is entitled to a chargeable interest in or over land that on any |
| |
day consists of one or more single dwellings and non-residential land— |
| |
(a) | provisions referring to a “single-dwelling interest” operate as if the |
| |
person had (on that day) a separate chargeable interest in or over each |
| |
dwelling and a further separate chargeable interest in or over the non- |
| 25 |
| |
(b) | the chargeable interest in or over each dwelling is therefore a single- |
| |
| |
(5) | A single-dwelling interest is referred to as a single-dwelling interest “in” the |
| |
| 30 |
(6) | A single-dwelling interest in one dwelling is distinct from any single-dwelling |
| |
interest in another dwelling, even if the dwellings stand successively on the |
| |
| |
| |
(a) | “non-residential land” means land that is not a dwelling or part of a |
| 35 |
| |
(b) | references to a dwelling include a part of a dwelling. |
| |
109 | Different interests held in the same dwelling |
| |
(1) | Subsection (2) applies if on one or more days in a chargeable period— |
| |
(a) | a company is entitled to two or more single-dwelling interests in the |
| 40 |
| |
(b) | two or more single-dwelling interests in the same dwelling are held for |
| |
the purposes of the same collective investment scheme. |
| |
|
| |
|
| |
|
(2) | This Part has effect with respect to that chargeable period as if those separate |
| |
interests constituted just one single-dwelling interest, the taxable value of |
| |
which on any day is the sum of the taxable values of the separate interests. |
| |
(3) | In calculating the taxable values of the separate interests for the purposes of |
| |
subsection (2), the market value of each interest is determined, under the |
| 5 |
provisions of TCGA 1992 applied by section 98(8), on the assumption that the |
| |
other interest or interests are placed on the open market with that interest (on |
| |
the valuation date appropriate to that interest). |
| |
110 | Interests held by connected persons |
| |
(1) | If on any day a company (“C”) is entitled to a single-dwelling interest in a |
| 10 |
dwelling and another person (“P”) who is connected with C is entitled to a |
| |
different single-dwelling interest in the same dwelling, this Part has effect— |
| |
(a) | in relation to C as if C were on that day entitled to P’s single-dwelling |
| |
interest as well as C’s single-dwelling interest, and |
| |
(b) | (if P is a company) in relation to P as if P were on that day entitled to |
| 15 |
C’s single-dwelling interest as well as P’s single-dwelling interest. |
| |
(2) | This subsection provides for an exception to subsection (1). |
| |
| Where P is an individual, C is not treated on the day in question as entitled to |
| |
P’s single-dwelling interest unless on that day C is entitled to a single-dwelling |
| |
interest in the dwelling that is a freehold or leasehold interest with a taxable |
| 20 |
value of more than £500,000. |
| |
(3) | If on any day a single-dwelling interest (“the scheme interest”) is held for the |
| |
purposes of a collective investment scheme and a person (“P”) who is |
| |
connected with the scheme is entitled to a different single-dwelling interest in |
| |
the same dwelling, this Part has effect— |
| 25 |
(a) | in relation to the scheme, as if both those separate interests were on that |
| |
day held for the purposes of the scheme, and |
| |
(b) | (if P is a company) in relation to P as if P were on that day entitled to |
| |
the scheme interest as well as P’s single-dwelling interest. |
| |
(4) | If on any day a single-dwelling interest in a dwelling is held for the purposes |
| 30 |
of a collective investment scheme (“the first scheme”) and another interest in |
| |
the same dwelling is held for the purposes of another collective investment |
| |
scheme (“the second scheme”) that is connected with the first scheme, this Part |
| |
| |
(a) | in relation to the first scheme, as if both the interests were held on that |
| 35 |
day for the purposes of that scheme, and |
| |
(b) | in relation to the second scheme, as if both interests were held on that |
| |
day for the purposes of that scheme. |
| |
| |
(a) | section 97, for provision about the liability to tax of persons treated |
| 40 |
under this section (read with section 104) as jointly entitled to a single- |
| |
| |
(b) | paragraph 55 of Schedule 33, for provision about returns in cases |
| |
involving joint entitlement. |
| |
(6) | The provisions mentioned in subsection (5) are to be read as including |
| 45 |
corresponding provision for cases where the same single-dwelling interest is |
| |
treated under this section as held— |
| |
|
| |
|
| |
|
(a) | for the purposes of different collective investment schemes, or |
| |
(b) | by a company and for the purposes of a collective investment scheme. |
| |
(7) | In the application of this section to Scotland— |
| |
(a) | the reference to a freehold interest is to the interest of the owner; |
| |
(b) | the reference to a leasehold interest is to a tenant’s right over or interest |
| 5 |
in property subject to a lease. |
| |
111 | Different interests held in the same dwelling: effect of reliefs etc |
| |
(1) | References in section 110 to a person do not include— |
| |
(a) | a public body, as defined in section 153, |
| |
(b) | a body listed in section 154(2) (bodies established for national |
| 10 |
| |
(2) | Subsections (1) to (4) of section 110 do not apply in relation to a single-dwelling |
| |
| |
(a) | the day in question is relievable with respect to that interest by virtue |
| |
of section 150 (providers of social housing), |
| 15 |
(b) | by virtue of section 151 (charitable companies) the ownership condition |
| |
is regarded as not met with respect to the interest on that day, or |
| |
(c) | the taxable value of the interest on that day is taken to be zero by virtue |
| |
of section 155 (dwelling conditionally exempt from inheritance tax). |
| |
(3) | Subsection (4) applies where the separate interests (the “relevant interests”) |
| 20 |
that under section 110 (or that section and section 109) are treated as |
| |
constituting, on a day, just one single-dwelling interest (“the combined |
| |
| |
(a) | a freehold or leasehold interest, and |
| |
(b) | a leasehold interest (“the inferior interest”) granted out of that interest. |
| 25 |
(4) | If the inferior interest is the most inferior relevant interest, the combined |
| |
interest, and the dwelling itself (where relevant), are regarded for the purposes |
| |
of the relevant relieving provisions as being exploited, on the day mentioned |
| |
in subsection (3), in the way the inferior interest is exploited on that day. |
| |
(5) | If the inferior interest is an interest in part only (“the sub-let part”) of the land |
| 30 |
that is the subject-matter of the combined interest, subsection (4) has effect in |
| |
relation to the combined interest only so far as that interest relates to the sub- |
| |
| |
(6) | In this section “the relevant relieving provisions” means sections 132 to 150. |
| |
(7) | The inferior interest counts as “the most inferior relevant interest” if no |
| 35 |
relevant interest (see subsection (3)) is a leasehold interest granted out of it. |
| |
(8) | In this section the reference to a leasehold interest includes the interest of a |
| |
lessee under an agreement for a lease. |
| |
(9) | In the application of this section to Scotland— |
| |
(a) | the reference to a freehold interest is to the interest of the owner; |
| 40 |
(b) | the reference to a leasehold interest is to a tenant’s right over or interest |
| |
in property subject to a lease; |
| |
(c) | the reference to an agreement for lease includes missives of let. |
| |
|
| |
|