If you have a company or limited liability partnership that owns a farmhouse, employee accommodation or other let residential property you may be liable for annual tax on enveloped dwellings (ATED).
From 1 April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are required to keep digital records for VAT and send HMRC returns using Making Tax Digital (MTD)-compatible software. Click here for help and support.
Even before planning consent is granted, or even applied for, the value of land may be affected by the possibility of development being able to take place. It is particularly difficult to quantify such “hope value”, but it may be important to bear it in mind for inheritance tax planning.
Following the uproar to the large increases in the draft 2017 valuation lists and the concern of many businesses that they were facing increases that were disproportionate the Chancellor announced in his budget three additional reforms on top of those already announced, that he hoped would help the transition:
- Support for small businesses losing Small Business Rate Relief
- English local authorities discretionary relief to support hard-hit businesses
- £1000 business rate discount for public houses
This Guidance Note gives details of these changes, and gives an outline of the Non Domestic Rates systems, reliefs, and appeals.
Many farmers and landowners let furnished accommodation to holiday visitors. Not only does this create income tax liability on the rental income, it may also have tax implications on areas such as capital gains tax (CGT) and inheritance tax (IHT).
If you hire VAT registered builders or tradesman to carry out construction services, it is essential that you know the correct VAT rate applicable to their invoices so that you do not suffer an unnecessary 20 percent increase in your build costs. This is particularly important if these costs are incurred in a personal, non-business capacity and therefore there is no possibility to recover the VAT you are charged as input tax.
If you have entered into a grazing licence or are considering doing so, this guidance note highlights the key issues you need to consider in relation to maintaining the available inheritance tax reliefs.
The issue of the taxation of accommodation provided for employees is one that affects many members; for example, where a farm worker lives in a farm cottage, where a groom lives on site or where horticultural nursery workers are provided with accommodation in close proximity to greenhouses.