Property Taxes

Annual Tax on Enveloped Dwellings (ATED)

Property valueAnnual charge to
 31.3.201831.3.2017
£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

  1. The ATED applies to 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

Purchase priceRate 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

  1. 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.
  2. 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.
  3. New leases with a net present value of rents exceeding £125,000 attract SDLT of 1% of that excess.

Commercial property

Purchase price for freeholdRate on band
Up to £150,000 Nil
Between £150,001 and £250,000 2%
Over £250,000 5%

Net present value of rent for leaseRate 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 priceRate 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

  1. In Scotland LBTT replaced SDLT for purchases from 1 April 2015.
  2. 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 priceRate on band
Up to £150,000 Nil
£150,001 - £350,000 3%
Over £350,000 4.5%

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%.
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