ATED: increase for residential properties worth more than £2 million

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The rates of annual tax on enveloped dwellings (ATED) for residential properties worth more than £2 million will be increased by 50% above inflation. The ATED filing obligations and information requirements will also be simplified.

The new rates, that will be included in the Finance Bill 2015 and will apply for the chargeable period 1 April 2015 to 31 March 2016, are:

  • £23,350 for properties with a taxable value of over £2 million up to £5 million.
  • £54,450 for properties with a taxable value of over £5 million up to £10 million.
  • £109,050 for properties with a taxable value of over £10 million up to £20 million.
  • £218,200 for properties with a taxable value of over £20 million.

The announcement refers to properties owned through a company and does not mention properties owned by other non-natural persons.

It was announced in the 2014 Budget that the government would consult on possible options to simplify the administration of ATED. The Autumn Statement announcement does not provide details on how the filing obligations and information requirements will be simplified. It is, therefore, expected that the detail will be included in the draft Finance Bill 2015 clauses

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