PART 2Excise duties and other taxes

Annual tax on enveloped dwellings

72ATED: interests held by connected persons

(1)

Section 110 of FA 2013 (interests held by connected persons) is amended as follows.

(2)

In subsection (1), after “If on any day” insert “ (“the relevant day”) ”.

(3)

In subsection (2)—

(a)

omit “on the day in question”;

(b)

after “P's single dwelling interest” insert “ on the relevant day ”;

(c)

for “£500,000” substitute “ £250,000 ”.

(4)

After subsection (2) insert—

“(2A)

Subsection (2B) applies in any case where—

(a)

C would (without subsection (2B)) be treated, as a result of subsection (1) (read with section 109), as entitled to a single-dwelling interest with a taxable value (on the relevant day) of more than £2 million, but

(b)

C would not be so treated if the value specified in subsection (2) were £500,000 (instead of £250,000).

(2B)

Subsection (2) has effect as if the value specified in it were £500,000 (instead of £250,000).”

(5)

The amendments made by this section have effect in relation to chargeable periods beginning on or after 1 April 2015.