More properties will be caught in the net of increased taxes following the Budget announcement this week. Particularly in London, where property values are at their highest, the extension of ATED (Annual Tax on Enveloped Dwellings) to property valuing £500,000 and above will affect the capital’s mainstream market. I anticipate that more owners of properties in a corporate structure might consider renting out their property rather than leaving it empty. This is one way of mitigating the tax which, on a property valued between £500,000 and £1,000,000, would cost £3,500 per year if left empty from April 2016.
See our press release '2014 Budget: Effect on Prime Residential Property market'
Head of Residential Lettings
T: 020 7518 3234