James Hamand, Head of Professional Valuations at Douglas & Gordon, has voiced his thoughts on the change.

James has worked in residential valuations for over ten years. Valuing properties worth up to £150m, he advises private individuals and institutional landlords on how to get the best possible results from their holdings and regularly gives expert evidence at tribunal hearings.

He said:

“ATED (Annual Tax on Enveloped Dwellings) was brought in with effect from 1 April 2013 and applies to UK residential properties owned by non-natural persons (i.e. by a company or other investment vehicle). However, from 1 April 2016, it will now also apply to residential properties worth between £500,000 and £1 million.

“As was the case under the old SDLT regime, we are seeing fewer properties transacting at or just above threshold values i.e. 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”.

 

Posted by root

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