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Residential Property in corporate entities – Beware of more charges!

Residential Property in corporate entities – Beware of more charges!

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.

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