Property held in companies – ATED tax
I have just read that properties held in companies within the UK are subjected to ATED (Annual Tax on Enveloped Dwellings) charge.
At the following rates
2 million levy 15000 every year
1 million levy 7500 every year from 2015
500.00 levy 3500 every year from 2016
I think this is when the one single property is of this value not the whole portfolio.
But whats to say that in 2018 they decide 250,000 a levy as to be paid, that will catch many out.
Also like CGT the level will probably never increase so eventually it could be every property.
What are people in this situation thinking of doing? Of course depending on which government gets in this could also change to portfolio ‘s over the above values.
Kathy
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Member Since September 2013 - Comments: 771
3:18 PM, 30th June 2014, About 12 years ago
Thanks Steve
But it will catch out property investors if the property is over 500,000 which I suspect quite a few are in London
Member Since August 2013 - Comments: 323 - Articles: 1
3:34 PM, 30th June 2014, About 12 years ago
Accouding to:- http://www.hmrc.gov.uk/so/ated-tech-guide.pdf
releifs are available to Property Rental Businesses (section 31), Property developers (section 36) and Property traders (section 37). I think this covers most Property investors.
So Property investment companies must complete an ATED Return and request the appropriate Releif for each property above the ATED threshold each and every year.
They should not be liable to the ATED tax but they must file the ATED return.