UK residential properties known as ‘enveloped dwelling’ held through non-natural persons (i.e. companies, certain partnerships) will be taxed according to valuations taken on 1 April 2017. The threshold above which Annual TAx on Enveloped Dwellings (‘ATEP’) is applied has fallen in recent years.
From 1 April 2016, the charge is levied on properties valued at in excess of £500,000.
The government is urging those responsible for an enveloped dwelling to obtain a valuation of the property as at 1 April 2017. A return for the period 1 April to 31 March 2018 is due by 30 April 2017, together with the associated tax.
If you would like more information about this, please contact Helen Sewell on [email protected] or call Helen on 01527 558539. More information about our tax and accounting services can be found here.
HMRC website has more information on enveloped dwelling.