Property Tax Changes
Property tax changes – taxation magazine:
There have been a number of significant changes to property taxation since 2013, including those which have not yet come to pass and are scheduled for 2017 and 2019.
Owners and advisors need to be on their toes. ROB DURRANT-WALKER summarises recent and upcoming changes to the UK’s property tax regime.
For years advisers were sure of where they stood when advising clients on property taxation. Yes, there were some foibles, but these were well known and in most cases giving advice was as easy as putting on your favourite clothes. All that has now changed. Property tax is undergoing a makeover with several changes having been made since 2013 and further developments are planned before 2019. A chronological overview of these should help to place these in context.
The first major change was the annual tax on enveloped dwellings (ATED). This applies to ‘high value’ UK residential property ‘enveloped’ wholly or partly in companies or partnerships where at least one of the partners is a corporate member, or by a collective investment scheme such as a unit trust or open-ended investment company (OEIC) – all ‘non-natural persons’. It is irrelevant whether the business entity is UK resident or not, just that the residential property is in the UK.
ATED commenced on 6 April 2013. The tax implications are:
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