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 value £ | Annual charge 2020/21 £ | 2021/22 | 2022/23 |
|---|---|---|---|
| Up to 500,000 | Nil | Nil | Nil |
| 500,001 to 1,000,000 | 3,700 | 3,700 | 3,800 |
| 1,000,001 - 2,000,000 | 7,500 | 7,500 | 7,700 |
| 2,000,001 - 5,000,000 | 25,200 | 25,300 | 26,050 |
| 5,000,001 - 10,000,000 | 58,850 | 59,100 | 60,900 |
| 10,000,001 - 20,000,000 | 118,050 | 118,600 | 122,250 |
| Over £20,000,000 | 236,250 | 237,400 | 244,750 |
Capital Gains Tax
The rates and annual exemption for capital gains tax are as follows:
| 2020/21 (£) | 2021/22 | 2022/23 | |
|---|---|---|---|
| Annual exemption | £12,300 | £12,300 | £12,300 |
| Annual exemption for most trustees and personal representatives | £6,150 | £6,150 | £6,150 |
| Rate for gains within the basic rate band | 10% | 10% | 10% |
| Rate for gains above the basic rate band | 20% | 20% | 20% |
| Gains on residential property (that do not qualify for private residence relief) within the basic rate band | 18% | 18% | 18% |
| Gains on residential property (that do not qualify for private residence relief) above the basic rate band | 28% | 28% | 28% |
| Rate for gains subject to Business Asset Disposal Relief | 10% | 10% | 10% |
| Lifetime limit for gains subject to Business Asset Disposal Relief | £1,000,000 | £1,000,000 | £1,000,000 |
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