PART 3

Annual tax on enveloped dwellings

Reliefs

Meaning of “non-qualifying individual”
136
1
In sections 133 and 135 “non-qualifying individual”, in relation to a single-dwelling interest, means any of the following—
a
an individual who is entitled to the interest (otherwise than as a member of a partnership),
b
an individual (“a connected person”) who is connected with a person entitled to the interest,
c
if a person is entitled to the interest as a member of a partnership, an individual who is, or is connected with, a qualifying member of that partnership,
d
an individual (“a relevant settlor”) who is the settlor in relation to a settlement of which a trustee is (in the capacity of trustee) connected with a person who is entitled to the interest,
e
the spouse or civil partner of a connected person or of a relevant settlor,
f
a relative of a connected person or of a relevant settlor, or the spouse or civil partner of a relative of a connected person or of a relevant settlor,
g
a relative of the spouse or civil partner of a connected person or of a relevant settlor,
h
the spouse or civil partner of a person falling within paragraph (g), or
i
an individual who is a major participant in a relevant collective investment scheme or is connected with a major participant in a relevant collective investment scheme.
2
In subsection (1)(c) “qualifying member”, in relation to a partnership, means a member of the partnership who is entitled to a 50% or greater share—
a
in the income profits of the partnership, or
b
in the partnership's assets.
3
In subsection (1)(i) “relevant collective investment scheme”, in relation to a single-dwelling interest, means a collective investment scheme that meets the ownership condition with respect to the interest.
4
A person who participates in a collective investment scheme is a “major participant” in the scheme if the person—
a
is entitled to a share of at least 50% either of all the profits or income arising from the scheme or of any profits or income arising from the scheme that may be distributed to participants, or
b
would in the event of the winding up of the scheme be entitled to 50% or more of the assets of the scheme that would then be available for distribution among the participants.
5
The reference in subsection (4)(a) to profits or income arising from the scheme is to profits or income arising from the acquisition, holding, management or disposal of the property subject to the scheme.
6
For the purposes of subsection (1), section 1122 of CTA 2010 (as applied by section 172) has effect as if subsections (7) and (8) of that section (application of rules about connected persons to partnerships) were omitted.
7
In this section—
- “relative” means brother, sister, ancestor or lineal descendant;
- “settlement” and “settlor” have the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act).
8
In subsection (1)(d) “trustee” is to be read in accordance with section 1123(3) of CTA 2010 (“connected persons”: supplementary).
Pt. 3 applied (17.7.2014) by Finance Act 2014 (c. 26), s. 223(8)(9)(e)
Pt. 3 modified (temp.) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 24 para. 2