Further to the introduction of the Annual Tax on Enveloped Dwellings on 1st April 2015, the revised valuations are now due under the self-assessment scheme. It will affect more property, since the legislation was first introduced the scope of the tax net has been widened to include property worth in excess of £500,000, which are held in an offshore type company or vehicle.
In such circumstances, the ultimate owners of the property are obliged to make a tax return on a self-assessed basis. This usually involves instructing a surveyor to value the property, the reason for this is that there are various tax thresholds at different valuation levels and it is important to ascertain what the correct property value is.
The thresholds are between £500,000 and £1,000,000, £1,000,000 to £2,000,000, £2,000,000 to £5,000,000 and £5,000,000 to £10,000,000. The key points, where a property is breaching one of the threshold limits which would trigger higher ATED levels. You should ensure that your property is professionally valued, in the event that HMRC revisit your tax return – you will then have a correct valuation to substantiate your tax return. If you have any queries regarding this, please do not hesitate to contact us.