The Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2023

Statutory Instruments

2023 No. 107

Annual Tax On Enveloped Dwellings

The Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2023

Made

1st February 2023

The Treasury, in discharge of the duty imposed by section 101(5) of the Finance Act 2013(1), make the following Order:

Citation

1.  This Order may be cited as the Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2023.

Chargeable amounts

2.  The amounts that by virtue of section 101 of the Finance Act 2013 (indexation of annual chargeable amounts) are to be the annual chargeable amounts for chargeable periods beginning on or after 1st April 2023 are determined in accordance with the following table, by reference to the taxable value of the interest on the relevant day(2).

Annual chargeable amount	Taxable value of the interest on the relevant day
£4,150	More than £500,000 but not more than £1 million.
£8,450	More than £1 million but not more than £2 million.
£28,650	More than £2 million but not more than £5 million.
£67,050	More than £5 million but not more than £10 million.
£134,550	More than £10 million but not more than £20 million.
£269,450	More than £20 million.

Nigel Huddleston

Steve Double

Two of the Lords Commissioners of His Majesty’s Treasury

1st February 2023

EXPLANATORY NOTE

(This note is not part of the Order)

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 2023. 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 2022 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 10.1% in the 12 months to September 2022 (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2022). As a result, the annual chargeable amounts for chargeable periods beginning on or after 1st April 2023 have increased by comparison to the amounts for chargeable periods beginning on or after 1st April 2022, as set out in the Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2022 (S.I. 2022/399).

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.

(1)

2013 c. 29.

(2)

“Relevant day” and “taxable value” are defined by, respectively, sections 99(5) and 102 of the Finance Act 2013. Section 102 was amended by section 71 of the Finance Act 2015 (c. 11).