Forthcoming Tax changes

Forthcoming Tax changes

Jun 4, 2015Auction

Wednesday, May 06, 2015 Last updated at 14:19


As a licensed member of ARLA we now alert our landlords to changes to two areas of tax on property holdings: Annual Tax on Enveloped Dwellings (ATED) and Capital Gains Tax (CGT) for Non Resident landlords.

This information is taken form the ARLA website:

Your clients may need to review their property portfolio positions before property tax changes come into force.

The Annual Tax on Enveloped Dwellings (ATED) applies where UK residential property is owned by a company, a partnership with a corporate partner or a collective investment scheme. ATED, formerly Annual Residential Property Tax, is an annual charge on UK residential property. From 1 April 2015 ATED applied to property valued over £1 million, and from 1 April 2016 this reduces to £500,000.

From 1 April 2016, there will be an ATED charge of £3,500 per year for a property worth £500,000 to £999,999.

Prior to April 2015 only UK residents paid Capital Gains Tax (CGT) on UK property at a current top rate of 28% tax on investment properties whilst non-residents could sell UK property at a gain without paying any UK tax. ARLA Licensed members are advised to alert clients to forthcoming changes.

Non Residents will be liable to pay CGT on the disposal of a UK residential property from 6 April 2015. The charge will apply to individuals, partners in partnership, trustees of trusts and close companies.

For further information seek advice from your Property Tax Accountant.