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  • RE: HMOs and ATED

    Fozia, thanks for posting that reply. Unfortunately it does not seem to make clear why the ATED department holds that view. In addition to the legislation mentioned before that seems to disapply linking where an ATED exemption applies, a further look at the legislation also suggests that the condition for "private access" in s117(1)(b) may not be met. Private access is defined in s118(2) of FA 2013 and appears to exclude an access using a part of the building that another party (besides the occupiers of the two rooms to be linked) has a right to use. In other words if, say, a shared living room has 3 (locked) bedrooms leading from it, the access from room 1 to room 2 using this shared space would be accessed by the occupier of room 3 in addition to the residents in rooms 1 and 2. This may mean that there is no private access between rooms 1 and 2. The lack of clear guidance about HMO's and the reasons why they may fall within ATED is frustrating. We are waiting on an e-mail from the ATED team, so maybe something more concrete will be forthcoming, but it would be great to get more certainty regarding how the legislation should be interpreted.
  • RE: HMOs and ATED

    Is any more clarity available on this? The legislation in Sections 117 and 118 of Finance Act 2013 appears to provide an exclusion from treating two parts of a building as linked dwellings if an ATED relief (such as a letting business) applies - see Section 117(4)(a). Does this mean that HMO's and similar shared flats are not reportable, even if the value of the whole building is greater than £500k, provided the individual flats/rooms are used for a letting business and are not available to a "relevant individual"?