We are urging farm businesses held in a company structure to have a professional property re-valuation now as it could result in tax savings. The next Annual Tax on Enveloped Dwellings (ATED) re-valuation date is scheduled for 1 April 2022 and it may be wise for farm businesses held in a company to commission an up-to-date property valuation.
ATED is an annual tax payable by companies which own residential property in the UK with a value of £500,000 or above. Currently, residential properties valued from £500,000 up to £1m attract an annual charge of £3,700, and for those between £1m and £2m the charge is £7,500.
Helen Tibbitts who leads our valuation team in the South West, said: “Farmhouses often have a value in excess of £500,000, especially with recent price increases, so there is a potential liability for many to be caught by the tax. For properties with a valuation on the cusp of two bands, a reliable, up-to-date valuation could result in significant savings. Furthermore, there are a number of reliefs and exemptions available, such as where a farmhouse is occupied by farm workers or let to a third party on a commercial basis. For farms, ATED is only applicable to the apportioned value of the residential element, not land, buildings or woodland, thus an accurate valuation is vital to ensure that no tax is unnecessarily paid, and no penalties are incurred for undervaluing.”
Our national team of professional RICS Registered Valuers at Fisher German are able to provide accurate up-to-date valuations, and reasoned residential apportionments of value for mixed use properties.
Find out more about our valuation service here.
