First published 27th March 2017; Updated 15th November 2018
Residential property owned by a company is potentially subject to ATED (Annual Tax on Enveloped Dwellings) where the value on the valuation dates is more than £500,000. Relief from ATED may be available if the use of the property meets one of several criteria including commercial letting or development.
Whether your property qualifies for relief or not you must still notify HMRC and complete annual returns for ATED. You must also have the property revalued once every five years.
April 2017 was another valuation date and so if your property is held through a company it is now time to get it revalued whether you are entitled to relief from the ATED or not. The April 5th 2017 valuation is tobe used for the calculation of ATED for each of the five years commencing April 2018.
The information contained in this newsletter is believed to be correct at the time of publication. The content of this newsletter is intended to be a brief summary of the principal points of the legislation or proposed legislation only, and it is provided for general guidance only. It may not take into account subsequent changes in the law and of necessity it omits much detail. Taxation is a complicated subject and is subject to change. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article. If the subject matter is of interest you should contact us to see if there is a relevant update, and to take professional advice which takes into account your circumstances.
Landlords Tax Services Ltd, specialises in the taxation of residential property income and gains and more than half its clients are resident outside the UK. If you would like specialist help contact Maurice Patry F.C.A .at email@example.com or for more information visit our website at Landlords Tax Services Ltd.
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. All Rights Reserved - In an article such as the one on this page we can only give brief general guidance and cannot cover all situations. This guidance may not cover all your personal circumstances and so you should not rely on it. Before taking action or not, always do your own specific research and seek appropriate professional advice which takes into account your personal circumstances, with the full facts of the case and all documents to hand. Neither Maurice Patry F.C.A. nor Landlords Tax Services Ltd can be held responsible for the consequences of any action or the consequences of deciding not to act.