The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Until the Commonhold and Leasehold Reform Act 2002, English law only recognised two forms of property ownership:
freehold – which confers upon the party absolute title in a property
leasehold – which confers upon the party holding the lease of a property of an interest in that land and property for a fixed number of years
From 2002 a new form of property interest was introduced called a commonhold interest in land and property.
Commonhold is a way of owning property in a multi-occupancy property and offers an alternative to the leasehold system. It allows for multi-occupancy buildings to be divided into units and common parts to be in the form of freehold ownership rather than leasehold. The freehold interest in the communal areas and its structure are usually owned by a commonhold association that is comprised of the owners of the units. It is designed to overcome some of the disadvantages of having a leasehold interest in a property. Commonhold can be applied to residential and commercial buildings however in practice it is more likely to be used in residential developments. In residential properties this will mean that each flat owner will own a freehold rather than a leasehold interest.
Commonhold is available for residential, commercial or mixed use developments. Parties owning the interest in individual units under commonhold are referred to as 'unit-holders'.
A commonhold may only be registered when all those with an interest in the property have agreed to form a commonhold.
It is possible for the property developer or landlord to enter into an agreement with existing occupants or identified future unit-holders to set up a commonhold. This will happen where a leasehold development is being converted to a commonhold.
It is possible for the property may be registered as a commonhold in advance of the future unit-holders being identified. The property developer will then sell the units in the same way as any other
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.