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ARTICLE · 03 APRIL 2014

Real Estate Tax Update

Withers LLP
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The ATED is an annual tax charge of up to £143,750 on residential property situated in the UK worth £2m or more which is held by certain non-natural persons.

United KingdomReal Estate and Construction
Christopher Groves
Christopher Groves
Sophie Dworetszky
Sophie Dworetszky
Judith Ingham
Judith Ingham
Sarah Cormack
Sarah Cormack
Paul Brecknell
Paul Brecknell
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Extension of the Annual Tax on Enveloped Dwellings ('ATED')

The ATED is an annual tax charge of up to £143,750 on residential property situated in the UK worth £2m or more which is held by certain non-natural persons. Where the non-natural person has been subject to the ATED on a property it is also subject to the 'ATED-related' capital gains tax charge on a disposal of that property.

The ATED is to be extended to properties of lower values, so that as of 1 April 2015 enveloped residential properties worth £1,000,000 – £2,000,000 will be subject to the ATED, and from 1 April 2016 this will be further extended to properties in the £500,000 - £1,000,000 price bracket.

Disposals of these properties will also be brought within the ATED-related capital gains tax charge from 6 April 2015 for properties worth £1,000,000 – £2,000,000 and from 6 April 2016 for properties worth more than £500,000.

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