Auto Trader Ltd
Farminguk
29 September 2016 | Online since 2003
Briefing Media - FG Classified


12 May 2014 03:03:11 |Finance,News,Property News

Farmers urged to act over house tax


Andrew Vickery

Andrew Vickery

Many farming families face a new tax on their houses from April 2015, and must act to reduce their liability, warns accountant Old Mill. Even those who qualify for exemption must apply, as relief is not given automatically.
This year’s budget introduced a new threshold for the Annual Tax on Enveloped Dwellings (ATED), which affects residential properties owned by companies and mixed partnerships. Previously the tax only applied to properties worth over £2 million, but from April 2015 it will include those above £500,000.
“The Government introduced the ATED in 2013, seemingly in response to swathes of central London property being bought in offshore companies, often in an attempt to avoid large Stamp Duty Land Tax charges on the cost,” said Andrew Vickery, head of rural services at Old Mill.
“Unfortunately the tax is now being extended to properties with a value between £500,000 and £2 million, which will clearly affect far more properties and potentially a good number of farmhouses, as they are often owned by a farming company or corporate partnership.”
The new banding will come into effect from 1 April 2015 and tax will first be payable on 31 October 2015. The annual charge will be £3,500 for values between £500,000 and £1 million, rising to £7,000 for properties worth between £1 million and £2 million.
“Fortunately, there are some useful exemptions for genuine working farmhouses, farm workers’ dwellings and properties which are let out,” said Mr Vickery. “However, the rules to qualify for the relief are - perhaps inevitably - not straightforward. In addition, property owners have to complete an ATED return each year to claim the relief – it is not applied automatically.” Where relief is not available, owners may consider restructuring to remove the company’s interest.

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment


Ireland | 29 September 2016
Irish dairy farmers seek €11m under EU milk reduction scheme

Irish dairy farmers have sought €11m to reduce milk production during the final three months of the year under the European Union’s Voluntary Milk Reduction Scheme. This is according to the Ministe...


USA | 29 September 2016
U.S. cattle prices continue to erode as supplies rise

Rising beef supplies and large supplies of competing proteins are eroding prices on fed cattle headed for slaughter, and market volatility continues to be the focal point of the U.S. market. In the...


USA | 29 September 2016
Farmers suing Syngenta over GMO corn granted class action status in federal court

A federal judge has granted class action status to at least 440,000 farmers accusing agrochemical giant Syngenta of selling genetically modified corn seeds and costing them billions of dollars in lost...


Australia | 29 September 2016
Global dairy prices lift as farmers slash production

Global dairy prices are rising as farmers around the world cut back on production, but local prices are still below the cost of production for many south-east Australian farmers. The previous Globa...


Puerto Rico | 29 September 2016
Puerto Rico Experiences an Agricultural Renaissance

For the first time in nearly 30 years, Puerto Ricans are buying rice, vegetables and traditional crops such as plantains and pineapples, that are produced on the island. As new farms spring across ...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

Farm subsidy payments funded by the UK taxpayer are being paid to millionai...


FarmingUK
FarmingUK Logo

FarmingUK

Labour will end the badger cull and prioritise ending bovine TB, Shadow Def...


FarmingUK
FarmingUK Logo

FarmingUK

A herd of rare White Park cattle could die out if its owners do not urgentl...


FarmingUK
FarmingUK Logo

FarmingUK

The UK government is "failing" to support farmers in the long-term accordin...


FarmingUK
FarmingUK Logo

FarmingUK

Retailer Co-op has announced that from May 2017 all of its bacon and lamb w...


FarmingUK
FarmingUK Logo

FarmingUK

Over 50 wildlife organisations have compiled a stock-take of all the UK's n...


FarmingUK
FarmingUK Logo

FarmingUK

In the run up to the EU farm ministers meeting the agricultural sector have...


FarmingUK
FarmingUK Logo

FarmingUK

The RPA must iron out a number of problems that still exist with 2015 BPS p...


FarmingUK
FarmingUK Logo

FarmingUK

Tourism businesses in the countryside are being held back due to the uncert...


FarmingUK
FarmingUK Logo

FarmingUK

A 24 point action plan aimed at revitalising Scotland's sheep sector after ...


closeicon
Username
Password