You may not have heard of ATED, this is an annual charge introduced by HMRC in April 2013. It is levied on those who hold high value residential property in a limited company for personal use. E.g. second homes or holiday homes.
When the regime commenced, it only applied to properties valued at £2 million and above. However from 1 April 2016, this limit reduces to £500,000 potentially bringing many more properties into the regime. The minimum annual charge for properties valued at more than £500,000 but less than £1million is £3,500, this increases dependent on property value.
However remember that ATED does not apply to properties which are let out to unconnected third parties on an commercial basis, giving a valuable exclusion for many property investors. If applicable the company must make an ATED return and pay over the tax for 2016/17 by 30 April 2016.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.