The valuation thresholds have reduced which means more properties will be caught by this tax net.
Like many of our farming and property owning clients, if you own a company that owns residential property in the UK then you have probably heard of ATED. This is a tax charge that was introduced on the 1st April 2012 with tax payments based on the value of the properties owned. When it was introduced it was only for properties in excess of £2.0 million however it now applies to properties worth more than £500,000. The base date for values has been April 2012 (unless the property has been purchased since) however another important change is that the tax returns for 2017 through to 2023 will be based on values at April 2017. Reliefs for farmhouses, for example, are still available but returns are still required.
With the threshold falling and average house prices rising the revaluation will bring more properties into the ATED net therefore in order to plan properly for next year’s return we advise thinking about commissioning valuations shortly. This could be especially beneficial if the property value is likely to sit near a key value threashold limit as this will impact of the valuation band the property sits within and the tax that is paid. To discuss any form of valuation requirements please contact Richard Greasby on Tel: 01285 883740 or E-mail: firstname.lastname@example.org.