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Capital Taxes

Enveloped Dwellings

The annual tax on enveloped dwellings (ATED) applies where a residential property located in the UK is owned by a non- natural person such as; a company, partnership with a corporate member or a collective investment scheme. There are a large number of reliefs and exemptions from the charge, but where such a relief does not apply the ATED charge must be paid by 30 April within the year at the following rates:

Property value £ Annual charge 2019/20 £
Up to 500,000 Nil
500,001 to 1,000,000 3,650
1,000,001 - 2,000,000 7,400
2,000,001 - 5,000,000 24,800
5,000,001 - 10,000,000 57,900
10,000,001 - 20,000,000 116,110
Over £20,000,000 232,350

Capital Gains Tax

The rates and annual exemption for capital gains tax are as follows:

2019/20 (£)
Annual exemption £12,300
Annual exemption for most trustees and personal representatives £6,000
Rate for gains within the basic rate band 10%
Rate for gains above the basic rate band 20%
Gains on residential property (that do not qualify for private residence relief) within the basic rate band 18%
Gains on residential property (that do not qualify for private residence relief) above the basic rate band 28%
Rate for gains subject to entrepreneurs" relief 10%
Lifetime limit for gains subject to entrepreneurs" relief £1,000,000