The coming annual charge for companies owning UK Residential Property

Residential properties held within certain corporate bodies will be subject to an annual charge as per the table below. This will be introduced from April 2013.


Property Value                          Annual Charge
£2m to £5m                                     £15,000
£5m to £10m                                   £35,000
£10m to £20m                                 £70,000
Greater than £20m                           £140,000

The tax base for the annual charge is the value of the stock of residential property valued at over £2 million owned by such corporate bodies.

What is not yet clear is whether the charge applies per property over £2 million, whether you just look at the total stock of properties which individually have a value of over £2 million and ignore lower value properties or whether it will apply in respect of the total value of all residential property held. If the latter applies then this will be truly concerning as it could have a real negative impact for residential investors with an increasing portfolio.