(1)Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.
(2)In section 94(2)(a) (charge to tax), for “£2 million” substitute “ £1 million ”.
(3)In section 99 (amount of tax chargeable), in the table in subsection (4), before the first entry insert—
| “£7,000 | More than £1 million but not more than £2 million.” |
(4)The amendments made by subsections (1) to (3) have effect for chargeable periods beginning on or after 1 April 2015.
(5)In a case where tax is charged for the chargeable period beginning with 1 April 2015 with respect to a single-dwelling interest the taxable value of which on the relevant day (see section 99(5) of FA 2013) is not more than £2 million, sections 159 and 163 of FA 2013 have effect with the following modifications.
(6)Section 159 (annual tax on enveloped dwellings return) has effect as if for subsections (2) and (3) there were substituted—
“(2)A return under subsection (1) must be delivered by the end of 1 October 2015 if the days on which the person is within the charge with respect to the interest include 1 April 2015.
(3)If the days on which the person is within the charge with respect to the interest do not include 1 April 2015, the return must be delivered—
(a)by the end of 1 October 2015, or
(b)by the end of the period of 30 days beginning with the first day in the chargeable period on which the person is within the charge with respect to the interest,
whichever is the later.”
(7)Section 163 (payment of tax) has effect as if for subsection (1) there were substituted—
“(1)Tax charged on a person under section 99 with respect to a single-dwelling interest must be paid—
(a)by the end of 31 October 2015, or
(b)if later, by the end of the filing date for the return.”
(1)Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.
(2)In section 94(2)(a) (charge to tax), for “£1 million” substitute “ £500,000 ”.
(3)In section 99 (amount of tax chargeable), in the table in subsection (4), before the first entry insert—
| “£3,500 | More than £500,000 but not more than £1 million.” |
(4)The amendments made by this section have effect for chargeable periods beginning on or after 1 April 2016.
(1)Schedule 4A to FA 2003 (SDLT: higher rate for certain transactions) is amended as follows.
(2)In paragraph 1(2) (meaning of “higher threshold interest”) for “£2,000,000” substitute “ £500,000 ”.
(3)In consequence of the amendment made by subsection (2), in the following provisions, for “£2,000,000” substitute “ £500,000 ”
(a)paragraph 4(1)(c);
(b)paragraph 6(2);
(c)paragraph 6(3)(b).
(4)The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 20 March 2014.
(5)But the amendments do not have effect in relation to a transaction—
(a)effected in pursuance of a contract entered into and substantially performed before 20 March 2014,
(b)effected in pursuance of a contract entered into before that date and not excluded by subsection (6), or
(c)excepted by subsection (7).
(6)A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—
(a)there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014,
(b)the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
(c)on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.
(7)A transaction treated as occurring under paragraph 17(2) or 17A(4) of Schedule 15 to FA 2003 (partnerships) is excepted by this subsection if the effective date of the land transfer referred to in sub-paragraph (1)(a) of the paragraph concerned is before 20 March 2014.
(1)In section 74 of FA 2003 (exercise of collective rights by tenants of flats), in subsection (1A) for “£2,000,000”, in each place it occurs, substitute “ £500,000 ”.
(2)The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 1 July 2014.
(3)But the amendments do not have effect in relation to a transaction—
(a)effected in pursuance of a contract entered into and substantially performed before 20 March 2014, or
(b)effected in pursuance of a contract entered into before that date and not excluded by subsection (4).
(4)A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—
(a)there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014,
(b)the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
(c)on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.
Schedule 23 amends Schedule 8 to FA 2003 (stamp duty land tax: charities relief).