Compact Services

  2015 Budget - Property Taxes

Annual Tax on Enveloped Dwellings (ATED)

From 1 April 2013 the ATED applies to 'high value' residential properties owned via a corporate structure, unless the property is used for a qualifying purpose. From 1 April 2015 the tax applies to properties valued at £1m or more (previously £2m or more). 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 2015/16 ATED return and tax due must generally reach HMRC by 30 April 2015.

Property Value Annual charge to 31/03/2016 31/03/2015
£1m to £2m £7,000 N/A
£2m to £5m £23,350 £15,400
£5m to £10m £54,450 £35,900
£10m to £20m £109,050 £71,850
£20m + £218,200 £143,750

Stamp Duty Land Tax

Residential property

Purchase price SDLT rate on the band*
Up to £125,000 Nil
£125,001 to £250,000 2%
£250,001 to £925,000 5%
£925,001 to £1.5m 10%
£1.5m + 12%

*A rate of 15% may apply to the total purchase price where the property is valued above 500,000 and purchased by a 'non-natural person' (e.g. a company).


Commercial property

Purchase price SDLT rate on total price
Up to £150,000 Nil
£150,001 to £250,000 1%
£250,001 to £500,000 3%
£500,000 + 4%

Land and Buildings Transaction Tax (LBTT)

From 1 April 2015, SDLT is replaced in Scotland by LBTT. Like SDLT, it is payable by the purchaser.

Residential property

Purchase price Rate on band
Up to £145,000 Nil
£145,001 to £250,000 2%
£250,001 to £325,000 5%
£325,001 to £750,000 10%
£750,000 + 12%

Commercial property

Purchase price Rate on band
Up to £150,000 Nil
£150,001 to £350,000 3%
£350,000 + 4.5%

Stamp duty on shares

No duty if consideration does not exceed £1,000, otherwise 0.5% of total consideration, rounded up to the nearest £5. Gifts, legacies and other 'gratuitous transfers' are generally not liable to duty at all.

Purchases of marketable securities are instead subject to 0.5% Stamp Duty Reserve Tax (SDRT), unless exempted (e.g. purchases of gilts).