Finance Act 2013 (High-end TV, Animation, Video Games)
What this means for your business
- Enforced by
- IPO
- Applies to
- United Kingdom
- On this page
- 5 compliance obligations, 1 practical guide
What you must do
5 compliance obligations under this legislation.
Risk assessment 1
Include self‑assessment in your tax return
When you submit either an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount, you must work out the tax you owe (the self‑assessment) and add it to the return. You also need to state the market value of the interest for each valuation date relevant to the assessment.
Payments and fees 2
Pay annual tax on high‑value enveloped dwellings
If your business owns a single‑dwelling property (an “enveloped dwelling”) worth more than £500,000 and meets the ownership condition, you must pay an annual tax on it. The tax is charged for each financial year that runs from 1 April to 31 March.
Pay tax on enveloped dwellings by the filing deadline
If you owe tax on a single‑dwelling interest (an enveloped dwelling), you must pay the amount due by the filing date of the annual tax return for that property. Any extra amount shown after the return is adjusted must also be paid by the filing date of the adjusted return. If a return is amended you must pay straight away (or by the filing date if the amendment is made before then), and any HMRC assessment must be paid within 30 days of the notice.
Offences and prohibitions 1
Fail to pay penalty for counter‑acted tax advantage in a partnership
Unlimited fineIf a partnership gets a notice that a tax advantage must be removed and that advantage is indeed counter‑acted, the partner who received the benefit must pay a penalty equal to 60% of the value of that advantage. The liability is a monetary charge; there is no prison term, but the tax authority can enforce payment.
Reporting and filing 1
Submit adjusted chargeable amount return for single‑dwelling interest
If you pay tax on a single‑dwelling property and either you did not claim interim relief (or the relief you claimed is less than the adjusted chargeable amount), you must file an additional tax return showing the adjusted amount. The return has to be sent to HMRC within 30 days of the relevant deadline.
Penalties for non-compliance
1 penalty under this legislation. 1 carry an unlimited fine.
Fail to pay penalty for counter‑acted tax advantage in a partnership
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
309 classified provisions from this legislation.
Duties 6
Offences and penalties 4
Powers 10
- s.10 Expenses of elected representatives
- s.81 Meaning of “decommissioning expenditure”
- s.100 Interim relief
- s.114 Power to modify meaning of “use as a dwelling”
- s.156 Modification of reliefs
- s.162 Returns, enquiries, assessments and other administrative matters
- s.209AA Protective GAAR notices
- s.209 Counteracting the tax advantages
- s.218 Statutory residence test
- s.219 Ordinary residence
Definitions 49
- s.32 Change in company ownership: company reconstructions
- Schedule 35 Annual tax on enveloped dwellings: miscellaneous amendments and transitory provision
- Schedule 43 General anti-abuse rule: procedural requirements
- s.59 Qualifying business transfer
- s.80 Decommissioning relief agreements
- s.83 Effect of claim on PRT
- s.85 Claims under agreement not to affect oil allowance
- s.91 Expenditure on decommissioning certain redundant plant or machinery
- s.96 Person liable The chargeable person the chargeable person
- s.98 Collective investment schemes: liability for and collection of tax
- s.102 Taxable value
- s.103 Section 102: “substantial” acquisitions and disposals
- s.107 Chargeable interests
- s.108 Meaning of “single-dwelling interest”
- s.118 Section 117: supplementary third party relevant individual
- s.120 Acquisitions and disposals of chargeable interests
- s.130 Conversion of dwelling for non-residential use
- s.133 Property rental businesses
- s.137 Dwellings opened to the public
- s.138 Property developers
- ... and 29 more definitions
Exemptions 30
- s.2 Personal allowance for 2013-14 for those born after 5 April 1948
- s.3 Basic rate limit for 2013-14
- s.8 London Anniversary Games
- s.9 Glasgow Commonwealth Games
- s.13 Income tax exemption for universal credit
- Schedule 22 Transitional provision relating to reduction in standard lifetime allowance etc
- s.63 Heritage maintenance settlements
- s.84 Terminal losses accruing by virtue of another's default
- s.95 Entitlement to interests
- s.110 Interests held by connected persons
- s.111 Different interests held in the same dwelling: effect of reliefs etc
- s.116 Dwelling in grounds of another dwelling
- s.117 Dwellings in the same building
- s.129 Demolition and replacement: other cases
- s.135 Non-qualifying occupation: look-forward and look-back
- s.139 Property developers: exchange of dwellings
- s.140 Property developers: supplementary
- s.145 Occupation by employees or partners of a qualifying trade or property rental business
- s.147A Caretaker flat owned by management company
- s.148 Farmhouses
- ... and 10 more exemptions