Property Taxes update – March 2021

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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Rishi Sunak delivered the Budget on 3 March 2021 in the House of Commons, announcing the Government’s tax and spending plans for the 2021/22 tax year. The property and construction industry has experienced a few changes, please find details below for items coming into force and items which may need to be on your radar.

Domestic Reverse Charge

The Domestic Reverse Charge (“DRC”) finally came into force on 1 March 2021 for the construction industry. Read full article

Corporate property ownersEntities performing building works
Annual Tax on Enveloped Dwellings ("ATED")
Residential properties with values exceeding 500,000 held by non-natural entities (i.e. companies, LLPs, Trusts, etc.) are subject to ATED. Purchases of ATED properties must be reported to HMRC within 30 days of purchase. Read full article
CITB Levy for Construction Activities
The Construction Industry Training Board (CITB) impose a levy on employers in the construction industry. Many involved in the construction industry are aware of the CITB and their requirements to submit returns and pay the levy. Read full article
Residential property purchases
Stamp Duty Land Tax holiday extended
The SDLT holiday has been extended to 30 June 2021. This means that purchasers have an additional three months to complete their purchases. Read full article
New rates of SDLT for non-UK residents from 1 April 2021
To determine whether a buyer is a non-UK resident for SDLT purposes a number of tests have to be devised which are dependant on the type of purchaser. Read full article

Assistance

Navigating around the different taxes can be a difficult task. If you would like to discuss your current situation or find out more information about one of the topics mentioned above, please contact one of our team who will be happy to assist you.

Do you need extra information?
Natasha Heron

Natasha is a member of the ICAEW as a qualified auditor and the Chartered Institute of Taxation, specialising in indirect taxes. Natasha has developed a specialism as an adviser on the Stamp Duty Land Tax implications of property transactions.

Contact Natasha at Natasha.Heron@hhllp.co.uk or on 01923 634460