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ATED applies to residential properties worth more than £500,000
From 1 April 2016, the annual tax on enveloped dwellings (ATED) applies to residential properties worth more than £500,000 owned by non-natural persons, such as companies or other investment vehicles.
As a result, James Hamand, head of professional valuations at Douglas & Gordon, said: ‘We are seeing fewer properties transacting at or just above threshold values. So a property theoretically worth £505,000 might now sell for £499,999 as owners take the new charges into account. This makes taking valuation and legal advice, particularly in the London market, critical if investors are to take a long-term view, maximise the value of their portfolios and mitigate future liabilities.’
Rob Durrant-Walker’s article ‘New clothes’ highlights the recent changes to property taxation.
