FRS 102 introduced extensive measurement and disclosure rules for non-basic financial instruments. Property companies were affected but these new rules may assist in simplifying disclosure as more loans will be defined as basic.
The proposals are relevant to individuals and partnerships of individuals with unincorporated property businesses. It is proposed that the cash basis would also be available to eligible non-UK resident landlords.
HMRC are proposing introducing special procedures for partnerships, jointly owned property and sub-contractors in the construction industry whereby one person is made responsible for providing information which will then automatically be added to the individual partner’s/joint property owner’s/ sub-contractors digital account.
The ATED legislation was introduced in 2013 and was a major shift in the UK property tax base. Who would have believed that it would be the start of a number of changes? Further changes are expected in 2017.
What remains to be seen, however, is whether this eventually puts downward pressure on residual valuations of suitable sites, which certainly over the last few years have been one of the key factors determining the shortage of supply of available land for housing.