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Annual Tax on Enveloped Dwellings


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MoneyWeek's anti-property articles came in handy this week, as Merryn has just blogged about something worth looking into if you're considering a limited company structure for your properties.

 

Its called the Annual Tax on Enveloped Dwellings (ATED).

 

From the GOV.UK article:

 

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £1 million.

You’ll need to complete an ATED return if your property:

  • is a dwelling
  • is in the UK
  • was valued at more than £2 million on 1 April 2012, or at acquisition, if later, for returns from 2013 to 2014 onwards
  • was valued at more than £1 million on 1 April 2012, or at acquisition, if later, for returns from 2015 to 2016 onwards
  • is owned completely or partly by a
    •         company
    •         partnership where one of the partners is a company
    •         ­collective investment scheme - for example a unit trust or an open ended investment vehicle

 

From 1 April 2016 there will be a further band for properties valued between £500,000 and £1 million. This will have an annual charge of £3,500.

 

I haven't heard or seen anything on this tax, but with Georgie Boy's dodgy antics, there's a risk this could be implemented at lower and lower price brackets.

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