Last week we reported on the change to ATED, the property tax charged on high-value residential homes owned by commercial entities in the UK; but that is not the only property tax change to take place from April 1st.
As of the start of this month, the lower threshold on property valuations for which ATED is charged has been halved, meaning many more investors face a bill of several thousands of pounds.
Meanwhile, other property tax changes affect commercial premises, and domestic properties north of the border, if you are planning a move to Scotland in the near future.
First of all, on commercial properties, those businesses with a single property whose rateable value is less than £6,000 now qualify for 100% relief under the Small Business Rate Relief scheme.
For rateable values between £6,000 and £12,000, there’s a sliding scale of rate relief – not a direct property tax as such, but a financial benefit based on your premises’ rateable value.
And north of the border in Scotland, stamp duty land tax is replaced by the Land and Buildings Transactions Tax, part of the move towards greater financial independence for the Scottish Government.