Another one of IFF’s high profile studies for HMRC has been published analysing the impact of the Annual Tax on Enveloped Dwellings (ATED).
The ATED was introduced as part of the Finance Act 2013 ensuring that people enveloping residential property in corporate envelopes (and not using them for a commercial purpose, such as renting) pay their ‘fair share’ of tax.
This report involved 40 in depth interviews with findings suggesting that ATED was successful in discouraging the initial enveloping of properties. In situations where envelopes already existed few took the option of de-enveloping as the ATED rate does not warrant losing benefits such as Inheritance Tax and privacy protection.
To view the full report Click Here