Farming as a company? Declare houses to avoid extra tax charge

Farming companies that own dwellings worth more than £500,000 must declare them for the Annual Tax on Enveloped Dwellings (Ated), which was introduced in 2013-14 for houses of higher value.

In many cases reliefs may be available for such houses. Ated applies to dwellings worth more than £1m in 2015-16 but from April 2016 the threshold reduces to £500,000.

See also: Advice on avoiding hefty new tax on farmhouses

“There are lots of reliefs, including farmhouses, dwellings for qualifying employees, and those rented out at arm’s length – for example, not to family members,” said Jeremy Moody, secretary of the Central Association of Agricultural Valuers. “However, you must remember to claim relief every year or you could face charges of several thousand pounds.”

The relief is claimed on a relief declaration return designed for farmhouses and available on the government website

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Are you, like many other farms, missing out on tax claims for R&D?

If you’re a limited company, you could be eligible for tax credits if you’re carrying out R&D on your farm. For more information and to find out if you’re eligible visit our R&D tax credits page.

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