Being pleased by the nature is an innate ability of human psychology and we will not deny that. How about having leisure time in the comfort of the house with the placement of a treehouse in your garden? Sounds fun right? Through such activities, you get a break from the routine and get a chance to soak up nature as well. Are you the one who is seeking a way to build a treehouse? Here is something very important for tax on my treehouse, that you should know before you do it. This will be a pleasant addition to your amenities. Do you know if the treehouse is taxable or not? And if yes, what could be the possible outcome of building a treehouse in your main home? This has been observed by the owners of houses that they found a sudden increase in the tax bills after they built a treehouse in their main home. It is best and advised to learn about this and later take your time to decide about your treehouse.

As per HMRC, building a treehouse in your home increase the value of a residential property. Otherwise, if a building or main home is being used for the benefit of the tenants or there are such gaining factors, building a treehouse will be more and more beneficial. This means that the residential building that is near nature or has the perks of a treehouse will be charged more tax than other buildings. Further, in the discussion of this guide, you will get the answers to frequently asked questions like what is the tax on my treehouse, what are tax implications in this case, and why is there a need for a building permit to make a treehouse.

Our clever and qualified tax advisors and bookkeepers can assist you to maintain the tax on my treehouse and calculate accurate VAT refunds at CruseBurke. Feel free to contact us.

What is a Treehouse – What is the Tax on My Treehouse?

This is discussed earlier as well that landscaping a garden in the residential property or building a treehouse with the purpose of gaining benefits from the tenants will immediately put you in the higher tax brackets. If you have gathered the relevant information, there will not be any doubts after receiving your increased tax bill. Several people enquire about whether the treehouse is huge enough to be taxable or not. Well, there are a few factors that will help to realise the importance of the set of rules in this regard. The most important thing that decides the tax implications is to identify whether a building is a permanent building or a non-permanent building.

This will be helpful to know whether a treehouse is huge enough to have a foundation for its building structure to be called a permanent part of the building or not. If built otherwise, the building will be considered temporary and no tax implications will be there. A permanent part of the building with a foundation is up for all types of tax implications.

Property Tax Implications on a Treehouse

You are not allowed to take the decision of building a treehouse on a foundation as the permanent part of your residential property without the building permit. You will have to seek permission from the local government in that case. Moreover, there is also a requirement of covering a certain limit of the area of your residential property. This treehouse will be a permanent part of the residential property, which will be a gaining factor for the owner of the building. Over the ransom of benefits, the tenants or other guests will get a factor of entertainment.

You are now liable to bring this into HMRC’s knowledge before you build because this will bring in new tax implications. If you fail to do so, you will be charged with a fine and will have to suffer serious consequences.

What is the Requirement of a Building Permit in the Case of a Treehouse?

You must have realised the fact that building a treehouse is a serious matter as it will add to your current tax bill and you will have to cover a certain limit of the area with the permission of the local government. This is because this is now a permanent part of your residential property and the value of your main house is now increased. However, in the case you fail to get permission for a building permit from the local government, there can be unfavourable consequences for you in the future. This can bring in a loss for you financially.

Your Main Home Value After Building the Treehouse

Once you are done with the process of seeking the building permit and have started to build your treehouse, this will be considered a permanent structure that is based on a foundation. The house value will be automatically increased. Now the permanent structure is not easily taken away from the house as well. Barns, garages, sheds, and treehouses are examples of permanent structures with residential property that are not removed easily from the building.

The Bottom Line

Now that we have gathered a fair amount of information about tax on my treehouse, we can bring the discussion towards wrapping up. We mean to explain that the addition of a treehouse is not only a source of attraction for the building, but it will add to the building’s value. Due to this very fact, there will be an increase in the tax bills as well. The factors of your location will also affect whether a treehouse will go taxable or not.

Let’s blow away all your tax or VAT worries by hiring professional and experienced accountants at CruseBurke in the UK. Reach out to us by giving us a call.

Disclaimer: All the information provided on tax on my treehouse, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.