Problems are ‘extremely likely’ to arise after legislation is enacted
HMRC has published guidance on the annual residential property tax (ARPT) set to take effect on 1 April. HM Treasury published 64 pages of draft legislation for Finance Bill 2013, and a draft explanatory note, on 31 January. The Bill will be published on 28 March.
The ICAEW Tax Faculty warned last week that the three-week consultation allowed by the Treasury was inadequate. ‘We repeat our earlier concerns that given the length and complexity of the new legislation, the proposed introduction date of 1 April 2013 is far too short a timetable,’ it said.
‘One of the stated aims is for property to be taken out of the non-natural person structures, but there is insufficient time to take advice and then to implement the advice before the legislation is effective. The time-frame also means that there is not enough time to review the draft legislation in its near final form, and it is extremely likely that problems will arise after enactment which could, with more time for consultation, have been resolved beforehand. Indeed, even now we do not have everything.’
An ARPT return will be required for a property if it is a dwelling in the UK; it was valued at £2m or more on 1 April 2012 (or at acquisition if later); and it is owned by a company, a partnership that includes a company, or a 'collective investment vehicle'.
Tax of £15,000 will be payable on a property valued at between £2m and £5m. Valuations may be submitted for a pre-return banding check in some cases.
Problems are ‘extremely likely’ to arise after legislation is enacted
HMRC has published guidance on the annual residential property tax (ARPT) set to take effect on 1 April. HM Treasury published 64 pages of draft legislation for Finance Bill 2013, and a draft explanatory note, on 31 January. The Bill will be published on 28 March.
The ICAEW Tax Faculty warned last week that the three-week consultation allowed by the Treasury was inadequate. ‘We repeat our earlier concerns that given the length and complexity of the new legislation, the proposed introduction date of 1 April 2013 is far too short a timetable,’ it said.
‘One of the stated aims is for property to be taken out of the non-natural person structures, but there is insufficient time to take advice and then to implement the advice before the legislation is effective. The time-frame also means that there is not enough time to review the draft legislation in its near final form, and it is extremely likely that problems will arise after enactment which could, with more time for consultation, have been resolved beforehand. Indeed, even now we do not have everything.’
An ARPT return will be required for a property if it is a dwelling in the UK; it was valued at £2m or more on 1 April 2012 (or at acquisition if later); and it is owned by a company, a partnership that includes a company, or a 'collective investment vehicle'.
Tax of £15,000 will be payable on a property valued at between £2m and £5m. Valuations may be submitted for a pre-return banding check in some cases.
