Articles by Matthew Gilligan
The much talked about new Association Rules are back before Parliament and unfortunately for those in the business of dealing in or developing property or erecting buildings, the Bill has not been substantially changed.
The new expanded definition of association has largely survived the Select Committee process and the new rules are likely to come into force in August, potentially from early August.
We are currently working through the rules, so if you are looking to buy a rental property in August please contact us for advice if you are concerned about potential tainting.
On the other hand, if you are in the business of erecting buildings, existing rental properties that you have could be tainted if you carry out improvements on those properties. If you are in the business of erecting buildings and are looking at making improvements to a rental property then contact us immediately as you need to know the implications of this.
Changing Use on Existing Stock
The other major impact that the change in Association Rules has is for those of you who have property bought for dealing and development purposes where you are considering a change of use. If you have a property bought for dealing and development purposes and you are considering holding it (i.e. making a complete change of use in respect of that property) you need to contact us urgently. You should consider restructuring the ownership of that property in the next two weeks before the new rules come into play.
In summary, the new Association Rules are coming in and, as feared, they are wide reaching and going to make it very difficult for those engaged in a business of dealing in or developing property or erecting buildings to prevent future rentals from being tainted.
More immediately than that though, if you have property owned by your dealing and development entity that you now wish to hold long term, you may need to take action within the next two weeks to restructure the ownership of that property before the rules change. If you are in the business of erecting buildings you also have to be extra careful if making improvements to existing rental properties.
The whole course was great. Super informative. - David M - June 2017
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