Property Taxes
Annual Tax on Enveloped Dwellings (ATED)
| Property value | Annual charge to | |
|---|---|---|
| 31.3.2018 | 31.3.2017 | |
| £0.5m – £1m | £3,500 | £3,500 |
| £1m – £2m | 7,050 | 7,000 |
| £2m – £5m | 23,550 | 23,350 |
| £5m – £10m | 54,950 | 54,450 |
| £10m – £20m | 110,100 | 109,050 |
| Over £20m | 220,350 | 218,200 |
Notes
- The ATED applies to residential properties owned via a corporate structure, unless the property is used for a qualifying purpose.
- There are many reliefs that can remove or reduce the charge, but in order to claim a relief, a Relief Declaration Return must be submitted.
- The ATED return and tax due must generally reach HMRC by 30 April within the relevant year.
Stamp Duty Land Tax (SDLT)
Residential property
| Purchase price | Rate on band |
|---|---|
| Up to £125,000 | Nil |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Notes
- From 1 April 2016, a supplement of 3% of the total purchase price applies where someone owningone or more residences acquires an additional residence for more than £40,000, unless they are replacing their main residence.
- Where purchaser is a company or partnership including a corporate member and price is over £500,000, SDLT is 15% of total purchase price if exemptions or reliefs do not apply.
- New leases with a net present value of rents exceeding £125,000 attract SDLT of 1% of that excess.
Commercial property
| Purchase price for freehold | Rate on band |
|---|---|
| Up to £150,000 | Nil |
| Between £150,001 and £250,000 | 2% |
| Over £250,000 | 5% |
| Net present value of rent for lease | Rate on band |
|---|---|
| Up to £150,000 | Nil |
| Between £150,001 and £5m | 1% |
| Over £5m | 2% |
Land and Buildings Transaction Tax (LBTT)
Residential property
| Purchase price | Rate on band |
|---|---|
| Up to £145,000 | Nil |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Notes
- In Scotland LBTT replaced SDLT for purchases from 1 April 2015.
- From 1 April 2016, a supplement of 3% of the total purchase price applies where someone owning one or more residences acquires an additional residence for more than £40,000, unless they are replacing their main residence.
Commercial property
| Purchase price | Rate on band |
|---|---|
| Up to £150,000 | Nil |
| £150,001 – £350,000 | 3% |
| Over £350,000 | 4.5% |
Notes
- The above rates of LBTT also apply to any lease premium on commercial properties.
- Leases with an NPV of rents exceeding £150,000 attract LBTT of 1%.
