In a sleight of hand similar to fiscal drag on income tax bands, the Treasury will instantly increase 2023/24 revenue from the Annual Tax on Enveloped Dwellings (ATED). This tax is charged to Non-Natural Persons (NNPs) holding a UK dwelling - not individuals. While the changes have slipped under the radar, with little coverage, it is yet another enhanced tax burden for those impacted by the regulations.
When the Trust Registration Service (TRS) was created back in 2017, there was criticism that it needed to go further. The original regulations were introduced as a consequence of the EU Anti-Money Laundering Directive. Even after Brexit, the UK authorities have agreed to maintain the TRS, which can be used with EU partners to identify potential issues.
All companies (whether UK or not) holding UK residential property valued at over £500,000 are subject to the Annual Tax on Enveloped Dwellings (ATED). This could mean more properties are likely to breech the £500,000 limit and fall into the ATED regime for the first time.
As an outsider looking in, surely the taxation of property gains is relatively straightforward? Understandably, maybe there are different rates for companies and individuals, but how much more complicated can it be?