Annual Tax on Enveloped Dwellings (ATED)
ATED applies to ‘high value’ residential properties owned via a corporate structure, unless the property is used for a qualifying purpose.
*Nil band rate up to 30.6.21 is £500,000, between 1.7.21 – 30.9.21 is £250,000.
**Nil rate band up to 30.6.21 is £250,000.
A supplement applies to all three taxes where an additional residential property is purchased for more than £40,000 (unless replacing a main residence). It is also payable by all corporate purchasers. The rate is 3% (LBTT and LTT: 4%) of the total purchase price.
SDLT: From 1.7.21, First-time buyers purchasing a property of up to £500,000 pay a nil rate on the first £300,000 of purchase price.
LBTT: First-time buyers relief increases the nil rate band to £175,000 from 1.4.21.
SDLT: A rate of 15% may apply to the total purchase price, where the property is valued above £500,000 and purchased by a ‘non-natural person’ (e.g. a company).
You are advised to consult us before acting on any information contained herein.