Act now to avoid farmhouse tax

摘要

Nobody likes additional paperwork, but failure to fill out anexemption form for a new tax on certain farmhouses could cost dearly.Last year, the Government introduced an Annual Tax on Enveloped Dwellings (ATED), which levies a hefty annual charge on residential properties owned by companies andmixed partnerships. This was, it seems, in response toswathes of London property being bought in offshore companies, often in an attempt to avoid Stamp Duty Land Tax. The problem is thatthis year s budget introduced a new threshold for the ATED. Previously the taxonly applied to properties worth more than ￡2 million, but from April 2015 it will include those above ￡500,000. This will clearly affect a good number of farmhouses, as they are often owned by a farming company or corporate partnership.