Finance Act 2021 (c. 26)

PART 3 U.K. Other taxes

Annual tax on enveloped dwellings U.K.

90 Relief for certain housing co-operatives U.K.

(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.”, and

(b) in the heading, at the end insert “ etc ”.

(2) After that section insert—

“150A Meaning 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.