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2018 Budget - Property Taxes |
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Annual Tax on Enveloped Dwellings (ATED)
| Property value |
Annual charge to |
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31.3.2019 |
31.3.2018 |
| £0.5m – £1m |
£3,600 |
£3,500 |
| £1m – £2m |
7,250 |
7,050 |
| £2m – £5m |
24,250 |
23,550 |
| £5m – £10m |
56,550 |
54,950 |
| £10m – £20m |
113,400 |
110,100 |
| Over £20m |
226,950 |
220,350 |
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, a Relief Declaration 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% |
| Over £1.5m |
12% |
Notes
- From 1 April 2016 a supplement of 3% of the total purchase price applies where someone owning one or more residences acquires an additional residence for more than £40,000, unless they are replacing their main residence. This supplement also applies to LBTT and LTT (see below) and all corporate purchasers.
- From 22 November 2017, first-time buyers purchasing a property for up to £500,000 pay SDLT at a nil rate on the first £300,000 of the price.
- 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% |
| Over £250,000 |
5% |
| Net present value of rent for lease |
Rate on band |
| Up to £150,000 |
Nil |
| Between £150,001 and £5m |
1% |
| Over £5m |
2% |
Land and Buildings Transaction Tax (LBTT) Scotland
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% |
| Over £750,000 |
12% |
Note
- For first-time buyers, the nil band is to be extended to £175,000, from a date to be confirmed.
Commercial property
| Purchase price |
Rate on band |
| Up to £150,000 |
Nil |
| £150,001 - £350,000 |
3% |
| Over £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%.
Land and Buildings Transaction Tax (LTT) Wales
Residential property
| Purchase price |
Rate on band |
| Up to £180,000 |
Nil |
| £180,001 - £250,000 |
3.5% |
| £250,001 - £400,000 |
5% |
| £400,001 - £750,000 |
7.5% |
| £750,001 - £1.5m |
10% |
| Over £1.5m |
12% |
Note
- LTT replaces SDLT in Wales from 1 April 2018.
Commercial property
| Purchase price |
Rate on band |
| Up to £150,000 |
Nil |
| £150,001 - £250,000 |
1% |
| £250,001 - £1m |
5% |
| Over £1m |
6% |
| Net present value of rent for lease |
Rate on band |
| Up to £150,000 |
Nil |
| Between £150,001 and £2m |
1% |
| Over £2m |
2% |
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