The Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2022
Citation1.
This Order may be cited as the Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2022.
Chargeable amounts2.
Annual chargeable amount | Taxable value of the interest on the relevant day |
|---|---|
£3,800 | More than £500,000 but not more than £1 million. |
£7,700 | More than £1 million but not more than £2 million. |
£26,050 | More than £2 million but not more than £5 million. |
£60,900 | More than £5 million but not more than £10 million. |
£122,250 | More than £10 million but not more than £20 million. |
£244,750 | More than £20 million. |
This Order states the annual chargeable amounts of the annual tax on enveloped dwellings.
Section 99(4) of the Finance Act 2013 (c. 29) sets out the annual chargeable amounts of tax. Section 101(5) of that Act provides for the indexation of those amounts.
This Order states the indexed amounts for chargeable periods beginning on or after 1st April 2022. Article 2 states the annual chargeable amounts by reference to the taxable value of the interest.
The annual chargeable amounts for each chargeable period beginning on or after 1st April are determined by reference to the “all items” Consumer Prices Index (CPI) as published by the Office of National Statistics. Where the September CPI (in this case the September 2021 CPI) is higher than it was for the previous September, the amounts of tax for the next chargeable period are increased by the same percentage increase in CPI, rounding down to the nearest multiple of £50. The CPI rose by 3.1% in the 12 months to September 2021 (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2021). As a result, the annual chargeable amounts for chargeable periods beginning on or after 1st April 2022 have increased by comparison to the amounts for chargeable periods beginning on or after 1st April 2021, as set out in the Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2021 (S.I. 2021/245).
A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and relates to routine changes following a predetermined indexation formula.