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 valueAnnual charge 2018/19 £Annual charge 2019/20 £*
Up to £500,000NilNil
£500,001 – £1,000,000£3,600£3,650
£1,000,001 – £2,000,000£7,250£7,400
£2,000,001 – £5,000,000£24,250£24,800
£5,000,001 – £10,000,000£56,550£57,900
£10,000,001 – £20,000,000£113,400£116,110
Over £20,000,000£226,950£232,350

*2018/19 figures were announced at Autumn Budget 2017 and are subject to enactment.

Capital Gains Tax

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

2018/19 (£)2019/20 (£)*
Annual exemption£11,700£12,000
Annual exemption for most trustees and personal representatives£5,850£6,000
Rate for gains within the basic rate band10%10%
Rate for gains above the basic rate band20%20%
Gains on residential property (that do not qualify for private residence relief) within the basic rate band18%18%
Gains on residential property (that do not qualify for private residence relief) above the basic rate band28%28%
Rate for gains subject to entrepreneurs’ relief10%10%
Lifetime limit for gains subject to entrepreneurs’ relief£10,000,000£10,000,000

*2018/19 figures were announced at Autumn Budget 2017 and are subject to enactment.