PART 3

Annual tax on enveloped dwellings

The charge to tax

Taxable value
102
1
The taxable value of a single-dwelling interest on any day (“the relevant day”) is equal to its market value at the end of the latest day that—
a
falls on or before that day, and
b
is a valuation date in the case of that interest.
2
Each of the following is a valuation date in the case of any single-dwelling interest—
a
1 April 2012;
b
each 1 April falling 5 years, or a multiple of 5 years, after 1 April 2012.
2A
But a day that is a valuation date only because of subsection (2)(b) (a “5-yearly valuation date”) is to be treated as if it were not a valuation date for the purpose of determining the taxable value of a single-dwelling interest on any day in the chargeable period beginning with that 5-yearly valuation date.
3
The following are also valuation dates in the case of any single-dwelling interest to which a company is entitled on the relevant day (otherwise than as a member of a partnership)—
a
the effective date of any substantial acquisition by the company of a chargeable interest in or over the dwelling concerned;
b
the effective date of any substantial disposal of part (but not the whole) of the single-dwelling interest.
4
The following are also valuation dates in the case of any single-dwelling interest to which a company is entitled on the relevant day as a member of a partnership—
a
the effective date of any substantial acquisition as a result of which a chargeable interest in or over the dwelling concerned became an asset of the partnership,
b
the effective date of any substantial disposal of part (but not the whole) of the single-dwelling interest.
5
The following are also valuation dates in the case of any single-dwelling interest that is on the relevant day held for the purposes of a collective investment scheme—
a
the effective date of any substantial acquisition, made for the purposes of the scheme, of a chargeable interest in or over the dwelling concerned;
b
the effective date of any substantial disposal of part (but not the whole) of the single-dwelling interest.
6
In this section references to a disposal of part of a single-dwelling interest include the grant of a chargeable interest out of the single-dwelling interest.
7
The grant of an option does not count as the grant of a chargeable interest for the purposes of subsection (6).
Pt. 3 applied (17.7.2014) by Finance Act 2014 (c. 26), s. 223(8)(9)(e)
S. 102(2A) inserted (26.3.2015) by Finance Act 2015 (c. 11), s. 71
Pt. 3 modified (temp.) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 24 para. 2