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Property Taxes

Annual Tax on Enveloped Dwellings (ATED)

Annual charge
Property value 2015/16 2014/15
£1m - £2m £7,000 Nil
£2m - £5m 23,350 £15,400
£5m - £10m 54,450 35,900
£10m - £20m 109,050 71,850
£20m + 218,200 143,750

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, an ATED return must be submitted.
  3. The ATED return and tax due must generally reach HMRC by 30 April within the relevant year.
  4. For 2015/16 a new ATED reliefs return will be available to submit by 1 October 2015 where no ATED charge is due.

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%
£1.5m + 12%

Notes

  1. SDLT charge is payable by the purchaser and applies to the amount of the purchase price falling within each band.
  2. Where purchaser is company or partnership including a corporate member and price is over £500,000, SDLT is 15% on total purchase price if exemptions or reliefs do not apply.
  3. Leases with a NPV of rents exceeding £125,000 attract SDLT of 1%.

Commercial property

Purchase price Rate
Up to £250,000 1%
Between £250,001 and £500,000 3%
£500,000 + 4%

Notes

  1. SDLT on commercial properties applies to the total purchase price, determined by the highest band applicable to the transaction
  2. Leases with an NPV of rents exceeding £150,000 attract SDLT of 1%.

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%
£750,000 + 12%

Notes

  1. In Scotland LBTT replaces SDLT for purchases from 1 April 2015.
  2. The LBTT is payable by the purchaser on the slice of the purchase price that lies within each band.

Commercial property

Purchase price Rate on band
Up to £150,000 1%
£150,001 - £350,000 3%
£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%.