PART 8SDLT and ATED
Annual tax on enveloped dwellings
135ATED: properties occupied by certain employees etc
1
Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.
2
Section 145 (occupation by certain employees or partners) is amended in accordance with subsections (3) to (5).
3
In subsection (1)—
a
in paragraph (b), after “qualifying trade” insert “
or qualifying property rental business
”
;
b
in paragraph (d) for “trade” substitute “
qualifying trade or qualifying property rental business
”
.
4
After subsection (4) insert—
5
For the meaning of “qualifying property rental business” see section 133(3).
5
The heading of that section becomes “
Occupation by employees or partners of a qualifying trade or property rental business
”
.
6
In section 146 (meaning of “qualifying employee” and “qualifying partner” in section 145)—
a
in subsection (1), after “trade” insert “
or property rental business
”
;
b
in subsection (2)—
i
in the words before paragraph (a), after “qualifying trade” insert “
or qualifying property rental business
”
, and
ii
in paragraph (a)(i), after “trade” insert “
or (as the case may be) property rental business
”
.
7
After section 147 insert—
147ACaretaker flat owned by management company
1
A day in a chargeable period is relievable in relation to a single-dwelling interest if the dwelling in question is a flat in relation to which the conditions in subsection (2) are met.
2
The conditions are that on that day—
a
a company (“the management company”) holds the single-dwelling interest for the purpose of making the flat available as caretaker accommodation,
b
the flat is contained in premises which also contain two or more other flats,
c
the tenants of at least two of the other flats in the premises are members of the management company,
d
the management company owns the freehold of the premises, and
e
the management company is not carrying on a trade or property rental business.
3
For the purposes of subsection (2), the management company makes a flat available “as caretaker accommodation” if it makes it available to an individual for use as living accommodation in connection with the individual's employment as caretaker of the premises.
4
In this section “premises” means premises constituting the whole or part of a building.
8
In section 116 (dwelling in grounds of another dwelling), in the list in subsection (6)—
a
in the entry relating to section 145, for “certain employees or partners” substitute “
employees or partners of a qualifying trade or property rental business
”
;
b
at the appropriate place insert— “
section 147A (caretaker flat owned by management company);
”
.
9
In section 117 (dwellings in the same building), in the list in subsection (5)—
a
in the entry relating to section 145, for “certain employees or partners” substitute “
employees or partners of a qualifying trade or property rental business
”
;
b
at the appropriate place insert— “
section 147A (caretaker flat owned by management company);
”
.
10
In section 132 (effect of reliefs under sections 133 to 150), in the list in subsection (3)—
a
in the entry relating to section 145, for “certain employees or partners” substitute “
employees or partners of a qualifying trade or property rental business
”
;
b
at the appropriate place insert— “
section 147A (caretaker flat owned by management company);
”
.
11
In section 159A (relief declaration returns), in the table in subsection (9), in the entry relating to section 145, for “(dwellings used for trade purposes: occupation by certain employees or partners)” substitute “
or 147A (occupation by certain employees etc)
”
.
12
The amendments made by this section have effect for chargeable periods beginning on or after 1 April 2016.