February 4, 2023

Tax corner: Considering the value of corporate-owned residential property

Annual Tax on Developed Dwellings (ATED) returns for properties – matching the criteria, owned between the April 1 2022 to March 31 2023 period is required to be filed by April 30 2022. It applies to properties whereby it is valued in excess of £500,000, that are owned by a company or within a corporate wrapper, furthermore if the value of the dwelling has increased in recent years and its market value is more than £500,000 by the end of March 2022. There are various reliefs from these returns:

  •  Let to a third party on a commercial basis and isn’t, at any time, occupied (or available for occupation) by anyone connected with the owner;

•    open to the public for at least 28 days a year as part of a trade;

•    being developed for resale by a property developer;

•    owned by a property trader as the stock of the business for the sole purpose of resale;

•    repossessed by a financial institution as a result of its business of lending money;

•    acquired under a regulated home reversion plan;

•    being used by a trading business to provide living accommodation to certain qualifying employees (provided they           are entitled to less than 10% of the trade profits, the single dwelling interest and the company holding the single             dwelling interest);

•   a farmhouse occupied by a farm worker or a former long-serving farm worker;

•   owned by a registered provider of social housing

 

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Have you checked if you are due to be filing these taxes?

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