Capital Taxes

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 2013/14 £ Annual charge 2014/15 £
Up to 2,000,000 Nil Nil
2,000,001 - 5,000,000 15,000 15,400
5,000,001 - 10,000,000 35,000 35,900
10,000,001 - 20,000,000 70,000 71,850
Over £20,000,000 140,000 143,750

From 1 April 2015 the ATED charge is to be extended to properties with value of £1m to £2m. Then from 1 April 2016 the ATED charge will be extended to properties worth £500,001 to £1 million. The 15% rate of Stamp Duty Land Tax on such properties worth over £500,000 comes into effect from 20 March 2014 - see below.

Capital Gains Tax

The rates and annual exemption for capital gains tax are as follows:

2013/14 (£) 2014/15 (£)
Annual exemption £10,900 £11,000
Annual exemption for most trustees and personal representatives £5,450 £5,500
Rate for gains within the basic rate band 18% 18%
Rate for gains above the basic rate band 28% 28%
Rate for gains subject to entrepreneurs" relief 10% 10%
Lifetime limit for gains subject to entrepreneurs" relief £10 million £10 million

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Exel accountants is an accountancy firm based in Watford Hertfordshire. Exel accountants are a firm of qualified and experienced accountants specialising in providing accounting and taxation services to new and established businesses.

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Exel Accountancy Ltd
66B, Sydney Road
Watford WD18 7QX
0192 351 7300
info@exelaccountancy.co.uk

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