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2016 Budget - Property Taxes |
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Annual Tax on Enveloped Dwellings (ATED)
| Property value |
Annual charge to |
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31.3.2017 |
31.3.2016 |
| £0.5m – £1m |
£3,500 |
N/A |
| £1m – £2m |
7,000 |
£7,000 |
| £2m – £5m |
23,350 |
23,350 |
| £5m – £10m |
54,450 |
54,450 |
| £10m – £20m |
109,050 |
109,050 |
| £20m + |
218,200 |
218,200 |
Notes
- The ATED applies to residential properties owned via a corporate structure, unless the property is used for a qualifying purpose.
- There are many reliefs that can remove or reduce the charge, but in order to claim a relief, an ATED return must be submitted.
- The ATED return and tax due must generally reach HMRC by 30 April within the relevant year.
Stamp Duty Land Tax (SDLT)
Residential property
| Purchase price |
Rate on band |
| Up to £125,000 |
Nil |
| £125,001 - £250,000 |
2% |
| £250,001 - £925,000 |
5% |
| £925,001 - £1.5m |
10% |
| £1.5m + |
12% |
Notes
- 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.
- 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.
- New leases with a net present value of rents exceeding £125,000 attract SDLT of 1% of that excess.
Commercial property
| Purchase price for freehold |
Rate on band |
| Up to £150,000 |
Nil |
| Between £150,001 and £250,000 |
2% |
| £250,000 + |
5% |
| Net present value of rent for lease |
Rate on band |
| Up to £150,000 |
Nil |
| Between £150,001 and £5,000,000 |
1% |
| £5,000,000 + |
2% |
Land and Buildings Transaction Tax (LBTT)
Residential property
| Purchase price |
Rate on band |
| Up to £145,000 |
Nil |
| £145,001 - £250,000 |
2% |
| £250,001 - £325,000 |
5% |
| £325,001 - £750,000 |
10% |
| £750,000 + |
12% |
Notes
- In Scotland LBTT replaced SDLT for purchases from 1 April 2015.
- 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
| Purchase price |
Rate on band |
| Up to £150,000 |
Nil |
| £150,001 - £350,000 |
3% |
| £350,000 + |
4.5% |
Notes
- The above rates of LBTT also apply to any lease premium on commercial properties.
- Leases with an NPV of rents exceeding £150,000 attract LBTT of 1%.
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