Residential Property Tax Update

What are clients talking to you about right now in terms of their valuation requirements?

Currently our clients are looking into the implications of recent legislation, to include the loss of Inheritance Tax protection for enveloped properties from April 2017 whether commercially let or not. They are considering the decisions that need to be made prior to the ATED rebase valuation set for April 2017. There also remains some confusion as to when the revaluations need to be undertaken as it appears that while the valuation date is 1 April 2017, the figure will not be submitted until next year. Some clients are currently considering de-enveloping and in some cases selling. We are currently undertaking a variety of valuations for properties in structures at different points in time – mainly 2013 and 2015 – to establish potential ATED CGT and NRCGT liabilities on any transfers. 

How are Knight Frank working with clients and advisers to prepare them for April? 

Tax valuation is at the heart of what we do and can form the majority of the work undertaken by the Knight Frank residential valuation team. We are able to adopt a pragmatic solution to suit clients’ needs along with our extensive experience of negotiations with the HMRC when required. Reports can be tailored to suit preference and we have implemented systems to provide an efficient and streamlined method of reporting in a timely fashion. We are strongly recommending clients consider their positions backed up by professional advice sooner rather than later in order to understand their position and options available to them.

Our latest Residential Property Tax Update offers comprehensive guide to the market impact of reforms in this area.