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A little known 'mansion tax' for property in Limited Companies

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For those with individual properties worth more than £500k held within a Ltd. Company you may wish to read this article in The Telegraph:  




Another great reason to be investing in the Northern Powerhouse and especially Gods County - Yorkshire!  Where investment properties don't tend to exceed £500k   ;o)



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7 minutes ago, james a said:

Doesn't it only apply to properties that aren't rented out?


Hi James,


well spotted - I actually missed that on my first read.  However, as you can be fined if you don't lodge a return I thought it best to still share this post.  

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When you look at the exceptions I struggle to work out who DOES need to pay! Seems like they are aiming to make money from the £100 fines for failing to do a return rather than the tax.


 In order to be able to claim a relief against ATED, the property must be either:

  • Let to a third party on a commercial basis and not occupied (or available for occupation) by anyone connected with the owner at any time;
  • Open to the public for at least 28 days a year on a commercial basis i.e. stately homes;
  • Being developed for resale by a property developer;
  • Owned by a property trader as the stock of the business or for the sole purpose of resale;
  • Repossessed by a financial institution as a result of its business of lending money e.g. equity release schemes;
  • Used by a trading business to provide living accommodation to employees, where the employee has less than 10% interest in the company e.g. key executives working in the UK;
  • A farmhouse occupied by a farm worker or a former long-serving farm worker;
  • Owned by a registered provider of social housing.

There are also exemptions for:

  • Residential property owned by a charity and held for charitable purposes;
  • Properties held by public bodies, and bodies established for national purposes;
  • Properties conditionally exempt from inheritance tax.
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