REAL ESTATE NEWS JANUARY 2017
Property Law Updates
- Draft Finance Bill 2017: do you own your residential property though a company- Annual Tax Rates are increasing
The annual chargeable amounts for the Annual Tax on Enveloped Dwellings (ATED) are increasing for the chargeable period 1 April 2017 to 31 March 2018. ATED applies to high-value UK residential property owned on, or acquired after 1 April 2013, by non-natural persons (a company, for example). ATED is an annual tax and is charged in respect of chargeable periods running from 1 April to 31 March starting with the period 1 April 2013 to 31 March 2014. ATED applies where there is a chargeable interest which:
- is a single-dwelling situated in the UK
- has a value of £500,000 or above from 1 April 2016, or at acquisition if later, and
- is owned, completely or partly, by a non-natural person.
- Current rates of ATED are: £500,000 to £1 million – £3,500 в год; £1 million to £2 million – £7,000 в год; £2 million to £5 million – £23,350; £5 million to £10 million – £23,350; £10 million to £20 million – £109,050
- Oral agreement to sell a plot of land enforceable (Matchmove Ltd v Dowding  EWCA Civ 1233)
It is well established law set out in Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (the “Act”) that a contract for the sale of interest in land can only be made in writing and only by incorporating all the terms which the parties have expressly agreed in one document.
- Notwithstanding that, at the end of last year (December, 2016), the Court of Appeal decided that an oral agreement to sell a meadow was enforceable through constructive trust. Though there was no written contract, the facts brought an oral agreement in this case into compliance with Section 2 of the Act. It was made clear by the Court, that all circumstances in each particular case should be considered, including reaching an agreement with sufficient details (not agreement in principle). If there is no expectation to get a legal contract and ‘constructive trust’ exists, an oral agreement for purchase of land will be enforceable.
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