New Residential Property Tax – Update!

What is ATED?

A new residential property tax known as ATED (Annual Tax on Enveloped Dwellings), which was first introduced in 2014.

This new tax was first introduced for properties worth over £2m, with the first return being due in 2014. Now that the threshold has fallen to properties worth in excess of £1m for 2015 and further to £500k for 2016, we are finding that this onerous legislation is impacting virtually all individuals who own properties through a company structure.

How might this affect you?

Additional reporting to HMRC, is now required for all individuals owning a residential property through a company.

Of interest to?

Property Managers, Accountants, Investors and anyone who advises clients and/or manages property which may be affected.

Next Steps

Anyone needing to complete an ATED is advised to have an independent valuation carried out by a RICS Chartered Surveyor with a historic valuation dated April 2012. The ATED tax return needs to be submitted each April, with the tax due (if any) by 30th April each year. Not everyone needs to pay the ATED tax, but the return is required to be submitted, detailing the relevant relief due.

New Capital Gains Tax (CGT) for Non UK Residents Update!

Background

Historically, properties in the UK which were owned by non UK residents did not incur capital gains tax. However, this rule is changing from April 2015.

Changes

Non UK residents now face the same capital gains tax charge on disposals of assets as UK residents, i.e. being taxed at 28% of the gain! Any gain made prior to April 2015 will not be subject to capital gains tax. Valuations of properties held by non UK residents are now required as at April 2015, in the event a disposal is ever made in the future.

Of interest to?

Property Managers, Accountants, Investors and anyone who advises clients on property would be advised to carry out a valuation of properties which may be affected.

Next Steps

We can assist with an independent valuation carried out by an RICS Chartered Surveyor with a valuation dated April 2015. We have been working extensively with property management companies, letting agents, accountants and individuals both in the UK and overseas since the changes were introduced.

Call us for an informal conversation.