HROC (agency) - Kubota
Farminguk
25 May 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

Comment

Please enter your comment


Post Comment

Your comment submitted successfully.Please wait for admin approval.


Comments

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

World News

Australia | 24 May 2016
Are robots replacing farmers? Machines could take over jobs of humans

Robots being introduced into the agricultural industry could replace the need for human farmers - with a single machine looking after massive areas of land. The new 'farmbots' are also thought to b...


USA | 24 May 2016
From crisis to development: boosting agriculture

With increasing frequency and magnitude, disasters and conflicts are causing untold human suffering in many parts of the world. These are as diverse as Typhoon Haiyan, Ebola, the civil war in Syria, t...


Australia | 24 May 2016
Victorian Government and dairy industry offer struggling farmers $11.4 million support package

The Victorian Government and the dairy industry have announced an $11.4 million support package to help dairy farmers battling retrospective price cuts. Major processors Murray Goulburn and Fonterr...


Australia | 24 May 2016
This is the robot that will shepherd and keep livestock healthy

The Australian Centre for Field Robotics (ACFR) is no stranger to developing innovative ways of modernizing agriculture. It has previously presented technologies for robots that can measure crop yi...


New Zealand | 24 May 2016
Dairy farmers not looking for handouts

Farmers want better infrastructure, roads and greater access to broadband, but are not looking for any handouts from the Government in Thursday's Budget. Dairy farmers across the Tasman are looking...



Trending Now

Viewed
Discussed

Farms and Land for sale

PropertyLocation
PropertyAgent
PropertyMinimumPrice
PropertyMaximumPrice
PropertyCategory

Holiday Rentals search

AccommodationKeyword
AccommodationType
AccommodationCounty
AccommodationStarRating


Top stories you may have missed
closeicon
Username
Password