Print Options
PrintThe Whole
Instrument
PrintThis
Explanatory Note
only
Status:
This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
EXPLANATORY NOTE
This Order states the annual chargeable amounts of the annual tax on enveloped dwellings.
Section 99(4) of the Finance Act 2013 (c. 29) sets out the annual chargeable amounts of tax. Section 101(5) of that Act provides for the indexation of those amounts. This Order states the indexed amounts for chargeable period beginning on or after 1 April 2019. Article 2 states the annual chargeable amounts by reference to the taxable value of the interest. The annual chargeable amounts for each chargeable period beginning on or after 1 April are determined by reference to the “all items” Consumer Prices Index (CPI) as published by the Office of National Statistics. Where the September CPI (in this case the September 2018 CPI) is higher than it was for the previous September, the amounts of tax for the next chargeable period are increased by the same percentage increase as the percentage increase in CPI, rounding down to the nearest multiple of £50. The September 2018 CPI was 2.4% (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2018) meaning that the annual chargeable amounts for chargeable periods beginning on or after 1st April 2019 have increased by comparison to the amounts for the chargeable period beginning on 1st April 2018, as set out by the Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) (No. 2) Order 2017 (S.I. 2017/1246).
A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and relates to routine changes to rates to a predetermined indexation formula.
Back to top