PART 3Other taxes

Annual tax on enveloped dwellings

90Relief for certain housing co-operatives

1

In section 150 of FA 2013 (providers of social housing)—

a

after subsection (3) insert—

3A

A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day a qualifying housing co-operative (as defined by section 150A) is entitled to the interest.

b

in the heading, at the end insert “ etc ”.

2

After that section insert—

150AMeaning of “qualifying housing co-operative”

1

A company is a “qualifying housing co-operative” for the purposes of section 150(3A) on any day if on that day—

a

it is a housing association within the meaning of—

i

the Housing Associations Act 1985, or

ii

Part 2 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)),

b

it is a registered society within the meaning of—

i

the Co-operative and Community Benefit Societies Act 2014, or

ii

the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, and

c

the rules of the association comply with subsection (2).

2

The rules of the association—

a

must restrict membership to persons who are tenants, or prospective tenants, of the association,

b

must preclude the granting or assignment of tenancies to persons other than members,

c

must prevent members from transferring any of their shares,

d

must prevent members from receiving any more than the nominal value of their shares on a return of share capital, and

e

must confer on members equal voting rights.

3

The amendments made by this section have effect in relation to—

a

the chargeable period beginning with 1 April 2021 and all subsequent chargeable periods;

b

the chargeable period beginning with 1 April 2020 but only in relation to a person and a single-dwelling interest falling within case A or case B.

4

Case A is that the first day in the chargeable period on which the person is within the charge with respect to the single-dwelling interest is on or after 3 March 2021.

5

Case B is that the person was within the charge with respect to the single-dwelling interest on one or more days in the chargeable period before 3 March 2021 but has not delivered an annual tax on enveloped dwellings return for the period with respect to the interest by 3 March 2021.

6

For the purposes of subsections (3) to (5), “single-dwelling interest”, “within the charge” and “annual tax on enveloped dwellings return” have the same meanings that they have for the purposes of Part 3 of FA 2013.