Agri-Shop Ltd
Farminguk
27 August 2016 | Online since 2003
Auto Trader Ltd


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


Canada | 26 August 2016
Canadian beef exports to EU in limbo over E. coli dispute

If differences of opinion over food safety practices are not resolved, the big promises of a new European market for Canadian beef may be a pipe dream. The Comprehensive Economic and Trade Agreemen...


India | 26 August 2016
GM mustard clears hurdle in India but more remain

A government panel has cleared commercial use of what would be India's first genetically modified (GM) food crop, but politicians still have to give final approvals amid wide-spread public opposition....


USA | 26 August 2016
USDA buys $20 million in cheese from dairy farms

Moving to bolster dairy farmers who are struggling to cope with price declines, the Agriculture Department announced Tuesday it is spending $20 million - on 11 million pounds of cheese. A taxpayer ...


France | 26 August 2016
Lactalis talks with French milk producers end with no deal

A meeting between Europe's largest dairy group Lactalis and French milk producers requesting a rise in prices ended in a deadlock after 10 hours of negotiations, sources close to the talks said. ...


USA | 26 August 2016
California farmers turn to sewers for water

California's prolonged drought is forcing Central Valley farmers to scramble for water to irrigate crops. They have to be creative. One agency is even turning to a sewage plant to meet demand. Just...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

The British public are overwhelmingly in favour of keeping or strengthening...


FarmingUK
FarmingUK Logo

FarmingUK

The sustained recovery of pig prices since the spring has come at a time wh...


FarmingUK
FarmingUK Logo

FarmingUK

A World Trade Organisation (WTO) panel has declared the Russian import ban ...


FarmingUK
FarmingUK Logo

FarmingUK

A new study has linked oilseed rape crops grown from neonicotinoid-treated ...


FarmingUK
FarmingUK Logo

FarmingUK

Philip Hammond is to guarantee billions of pounds of UK government investme...


FarmingUK
FarmingUK Logo

FarmingUK

Access to the foreign labour market is 'critical', according the chief exec...


FarmingUK
FarmingUK Logo

FarmingUK

The Tenant Farmers Association has said the National Trust's vision for a p...


FarmingUK
FarmingUK Logo

FarmingUK

Ulster farmers will 'not lie down and wave the white flag' when Brexit nego...


FarmingUK
FarmingUK Logo

FarmingUK

The cost of rural crime to the UK economy costs £42.5 million a year, accor...


FarmingUK
FarmingUK Logo

FarmingUK

A young farmers club member from Oxfordshire has created a petition on the ...


closeicon
Username
Password