Finance Act 2014

109 ATED: reduction in threshold from 1 April 2015

(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.”