April 2013 saw the introduction of an annual tax on residential property owned through a company.
The annual charge is dependent on the value of the residential property held, the charges kick in when property has a value of £2 million.
The revenues earned by HMRC from this tax have far exceeded the Treasury’s expectations, and so the rules have been changed to go much further.
From 2015/16 property valued £1-2m will attract an annual charge, and
From 2016/17 property valued between £0.5m and £1m will also have an annual charge
Watch out – this charge is no longer exclusively for very valuable residential properties. Seek advice early if this is likely to catch you, this will give sufficient time to consider relevant planning.