06 July 2015 | Online since 2003

Farmers urged to act over house tax



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

Farmers urged to act over house tax


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




Comments


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

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


Start Date: 5 July 2015
G212: Breeding Advisor (Trainee Considered) - South West Wales

An exciting opportunity has arisen for a Dairy Breeding Advisor for an established territory within South West Wales. Our cli...


Start Date: 24 June 2015
Corn Cart Driver Job >>Cambridgeshire<<

Corn cart driver for harvest, from 20th July until around mid September.  Must have clean driving license and experience...


Start Date: 5 July 2015
C175: Poultry Farm Manager - Laying - West Midlands

Our client is looking for a dedicated Farm Manager to work on one of their Commercial Chicken Breeding Facilities in the West...


Start Date: 30 June 2015
Experienced combine/ tractor driver for harvest and cultivation. 1500 ac based near  >> York<<

I am looking for a hard working operative with experience, to lead corn, or operate a combine depending on exp...


Start Date: 18 June 2015
Job for Herdsperson >>>> Taunton

300 high yielding Holsteins on a x2 a day milking,TMR, cubicle housed 365days on a forward thinking family farm, milking expe...





Top stories you may have missed
5 June 2015 | Cattle

A strong pound and increased red meat imports coupled with a plentiful dome...


5 June 2015 | Arable

Depression is affecting Wales' farming industry and there is a need to use ...


5 June 2015 | Arable

With just one week to go before the final judging and announcement of the w...


5 June 2015 | Finance

A rural law expert has highlighted the importance of good succession planni...


5 June 2015 | Farmshops

A south Yorkshire dairy farming family is pulling out all the stops to prom...


4 June 2015 | Finance

Predicting what is going to happen to wheat prices is a challenge, but in s...


4 June 2015 | Agri Safety

A Lancashire based livestock theft prevention scheme is aiming to go nation...


4 June 2015 | News

A female farmer has been recognised by the farming and conservation industr...


4 June 2015 | Finance

The new Conservative government appears to be preparing to implement cuts f...


4 June 2015 | Arable

The Rural Payments Agency (RPA) will have mobile support units at the follo...