Tax charges on high-value residential property

There are three tax charges that relate specifically to UK residential property with a value in excess of £2 million which is owned by ‘non-natural persons’ (NNPs) such as companies. They are:

• a capital gains tax (CGT) charge which has applied since 6 April 2013, at a fixed rate of 28%, on sales of such properties, including sales by NNPs resident overseas;

• an annual tax on enveloped dwellings (ATED) which has applied to such properties since 1 April 2013; and

• a higher rate of stamp duty land tax (SDLT) for purchases of such properties by NNPs, which was implemented from March 2012 and amended from 17 July 2013.

The legislation reached its final form in the Finance Act 2013. Details are in our latest factsheet here.


Taxation - personal

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