Jump to content
House Price Crash Forum
Sign in to follow this  
Fairyland

Reduction in Mansion tax threshold could cost BTL investors thousands

Recommended Posts

Telegraph: The hidden 'mansion tax' that could cost buy-to-let investors thousands

Quote

What was once known as a tax only affecting the very wealthy could now catch out everyday landlords thanks to changes in its implementation and soaring house prices.

The tax is technically known as "annual tax on enveloped dwellings" (or ATED) and it was initially introduced to prevent wealth homebuyers setting up companies to buy properties in order to avoid duties.

But now a reduction in the point at which the tax kicks in could leave buy-to-let investors  - who increasingly buy properties through companies - with thousands of pounds in fines. This situation could arise even where the properties in question are fairly modest.

The tax, which is paid annually, initially applied only to houses worth more than £2m when it was first introduced in 2012. However, as of April last year it applies to all properties worth more than £500,000 - meaning it's likely to hit many investors in the south of England.

While there is an exemption for properties which are rented out privately, the owner must still file a return and risks being fined if they fail to do so.

I wasn't aware the threshold is reduced to £500,000

Edited by Fairyland

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.