Property Taxes 2016/17

Property Taxes

Annual Tax on Enveloped Dwellings (ATED)

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.

Stamp Duty Land Tax (SDLT)

Residential property

Notes

1. From 1 April 2016 a supplement of 3% of the total purchase price applies where a second home is purchased for more than £40,000.
2. Where purchaser is a 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. New leases with a net present value of rents exceeding £125,000 attract SDLT of 1% of that excess.

Commercial property

Land and Buildings Transaction Tax (LBTT)

Residential property

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 a second home is purchased for more than £40,000.

Commercial property

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%.