HMRC’s new Annual Tax on Enveloped Dwellings

New rules state that if UK residential property  valued above £2m is owned by non-natural persons (UK or non-UK) then an Annual Tax on Enveloped Dwellings (ATED) return must be filed by the submission deadline of 1 October 2013.

What is a ‘ mon-natural person’ ?  These are identified as including:

• companies;
• collective investment schemes;
• partnerships, one or more of whose members is a company.

There may be annual fixed tax charge that is due too.

Relief from ATED is available to a company acting as a trustee of a trust and potentially also for genuine residential property businesses operating on a commercial basis such as a property rental or as a trading/development business. Also, reliefs maybe available where properties are used for employee accommodation, farmhouses, public access property and charities.

Importantly, to claim these reliefs from ATED, HMRC will require an ATED return to be completed.

It is advisable for those affected by this new legislation to have considered all the details. This may be a complex assessment in certain circumstances.

Where the property value exceeds £2m, information regarding the property and its valuation will be required to be disclosed. We would also expect that HMRC will wish to tie its records into the UK Land Registry.

As with other UK tax returns, some form of declaration will likely be required.

If you consider that you would benefit from receiving specialist Tax advice in this area please contact Ward Williams, who will then be able to advise and deal with any relevant tax filing as circumstances require.

enquiries@wardwilliams.co.uk

http://www.wardwilliams.co.uk