This is an annual tax on high value UK residential property. It is payable on a single dwelling property with a value of £500,001 or more where that property is owned by a non natural person e.g. a company, partnership or unit trust. There are reliefs available when the property is involved in a business (e.g. commercial letting or where it is part of a redevelopment) providing the property is not inhabited by anyone connected to the ultimate beneficial owner. There are many other reliefs which we can advise on, for example farmers, charities or corporate trustees may own the dwelling and not be liable to an ATED charge.
Since the introduction of ATED, it is not necessarily cheaper to hold a property in a structure if the owner intends to use it as their main residence, as long as advice is taken on Inheritance Tax. A bare trust or nominee company may be used for anonymity.
We can advise on which property holding structure is appropriate to your individual circumstances and offer guidance on restructuring if necessary. If an offshore company is the best route to follow we can advise on calculating the tax owed relating to ATED and submit ATED returns to HMRC on our clients’ behalf. We also help to bring historic ATED filings up to date.
The ATED annual charge for 2020/21:
|Taxable value of interest in property
£500,001 – £1,000,000
|Annual Chargeable Amount
|£1,000,001 – £2,000,000||£7,500|
|£2,000,001 – £5,000,000||£25,200|
|£5,000,001 – £10,000,000||£58,850|
|£10,000,001 – £20,000,000||£118,050|
|£20,000,001 +||£236,250 each year|
To enquire about a quote to complete your ATED return contact us