Capital Taxes
Enveloped Dwellings
Annual tax on Enveloped Dwellings (ATED)
The annual charges per property in each of the valuation bands are:
| Property value £ | Annual charge 2020/21 £ | 2021/22 £ | 2022/23 £ | 2023/24 £ | 2024/25 £ | 2025/26 £ |
Up to 500,000 | Nil | Nil | Nil | Nil | Nil | Nil |
500,001 to 1,000,000 | 3,700 | 3,700 | 3,800 | 4,150 | 4,400 | 4,450 |
1,000,001 – 2,000,000 | 7,500 | 7,500 | 7,700 | 8,450 | 9,000 | 9,150 |
2,000,001 – 5,000,000 | 25,200 | 25,300 | 26,050 | 28,650 | 30,550 | 31,050 |
5,000,001 – 10,000,000 | 58,850 | 59,100 | 60,900 | 67,050 | 71,500 | 72,700 |
10,000,001 – 20,000,000 | 118,050 | 118,600 | 122,250 | 134,550 | 143,550 | 145,950 |
Over £20,000,000 | 236,250 | 237,400 | 244,750 | 269,450 | 287,500 | 292,350 |
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.
For the years 2023/24 to 2027/28 the property valuation is its market value on 1 April 2022, or when acquired, if later. For the previous five years the property valuation point was 1 April 2017, or the date of acquisition if later.
There are a large number of reliefs and exemptions from the charge, and where such a relief applies an ATED relief declaration must be submitted. In other cases where an ATED charge is due the ATED return must be delivered to HMRC and the charge paid by 30 April within the chargeable year that runs from 1 April to 31 March.
Capital Gains Tax
The rates and annual exemption for capital gains tax are as follows:
2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 | 2025/26 | |
Annual exemption | £12,300 | £12,300 | £12,300 | £6,000 | £3,000 | £3,000 |
Annual exemption for most trustees and personal representatives | £6,150 | £6,150 | £6,150 | £3,000 | £1,500 | £1,500 |
Rate for gains within the basic rate band | 10% | 10% | 10% | 10% | 10/18%* | 18%* |
Rate for gains above the basic rate band | 20% | 20% | 20% | 20% | 20/24%* | 24%* |
Gains on residential property and carried interest within the basic rate band | 18% | 18% | 18% | 18% | 18% | – |
Gains on carried interest within the basic rate band | – | – | – | – | – | 32% |
Gains on residential property above the basic rate band | 28% | 28% | 28% | 28% | 24% | 24% |
Gains on carried interest above the basic rate bandband | 28% | 28% | 28% | 28% | 28% | 32% |
Rate for gains subject to Business Asset Disposal Relief | 10% | 10% | 10% | 10% | 10% | 14% |
Rate for gains subject to Investors’ Relief | 10% | 10% | 10% | 10% | 10% | 14% |
Lifetime limit for gains subject to Business Asset Disposal Relief | £1m | £1m | £1m | £1m | £1m | £1m |
Lifetime limit for gains subject to Investors’ Relief | £10m | £10m | £10m | £10m | £10m/£1m* | £1m |