The annual chargeable amounts for the annual tax on enveloped dwellings (ATED) for properties over £500,000 held in companies will be increase by 3%
The ATED charge affects companies, partnerships with any company members, and collective investment schemes (collectively referred to as non-natural persons (NNPs)), which own an interest in UK residential property valued at more than £500,000 and which are not eligible for relief.
The ATED chargeable period runs from 1 April to 31 March, and the new charges will apply to the 2018-19 chargeable period effective 1 April 2018.
The increase was in line with government policy on ATED rises, reflecting a CPI rate of inflation rise for 2018-19
The amount of tax charged is based on a banding system based on the value of the property. There are a number of reliefs where a property is used for commercial purposes.
Property Value | Annual chargeable amounts for 2017-18 chargeable period | Annual chargeable amounts for 2018-19 chargeable period |
|---|---|---|
£500,001 to £1,000,000 | £3,500 | £3,600 |
£1,000,001 to £2,000,000 | £7,050 | £7,250 |
£2,000,001 to £5,000,000 | £23,550 | £24,250 |
£5,000,001 to £10,000,000 | £54,950 | £56,550 |
£10,000,001 to £20,000,000 | £110,100 | £113,400 |
£20,000,0001 and over | £220,350 | £226,950 |
Policy paper, Annual tax on enveloped dwellings: annual chargeable amounts