Carter Jonas
Carter Jonas

If you own a London flat

HIGHLIGHTS
2 bed in Chelsea
Purchased 2011
Prices increase on avg. 13%+
£15,000 payable
After a professional valuation the property is valued at £1.975m. No tax payable
LONDON FLAT
imageA two bedroom flat in Chelsea comprising of 900 sq ft, which was purchased in 2011 at £1.8m through a company vehicle to protect the privacy of the buyer. Prime Central London values increased on average by 13% between 2011 and April 2012 (being the valuation date for ARPT) to say £2,034,000.

This property would therefore be caught by the ARPT and be subject to an annual tax charge of £15,000 payable in October and rising each year linked to the Consumer Prices Index.

However each property behaves slightly differently and not necessarily following a local average. Detailed research underpinning a professional valuation indicates that the property’s value has performed slightly below the average and confirms a value of £1.975m thus below the tax threshold and no tax to pay.

Request a RICS valuation