Property Taxes 2019/20

Annual Tax on Enveloped Dwellings (ATED)

Notes

1. The ATED applies to ‘high value’ residential properties owned via a corporate structure, unless the property is used for a qualifying purpose.
2. 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.
3. The ATED return and tax due must generally reach HMRC by 30 April within the relevant year.

Stamp Duty Land Tax (SDLT)

Residential property

Notes

1. 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. It also applies to all corporate purchasers. A supplement also applies to LBTT and LTT (see below) at, respectively, 4% and 3% of total purchase price.
2. First-time buyers purchasing a property for up to £500,000 pay SDLT at a nil rate on the first £300,000 of the price.
3. 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.
4. New leases with a net present value of rents exceeding £125,000 attract SDLT of 1% of that excess.

Commercial property

Land and Buildings Transaction Tax (LBTT) – Scotland

Residential property

Note

For first-time buyers, the nil band is to be extended to £175,000.

Commercial property

Notes

1. The above rates of LBTT also apply to any lease premium on commercial properties.
2. Leases with an NPV of rents exceeding £150,000 attract LBTT of 1%.

Land and Buildings Transaction Tax (LTT) – Wales

Residential property

Commercial property