The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The annual tax on enveloped dwellings (ATED) regime was introduced by FA 2013, Part 3 and was one element of a series of anti-avoidance measures that were designed to make it less attractive to hold high-value UK residential property through a corporate structure (or ‘envelope’).
It should be considered in context with the charge to CGT on gains arising from the disposal of ATED-related properties (see ‘ATED-related gains’ below) and the 15% charge to SDLT on the transfer of such properties ― see the Stamp duty land tax ― basic rules guidance note.
The ATED regime applies to high-value UK residential property owned on, or acquired after, 1 April 2013, by:
partnerships with at least one company member, or
collective investment schemes (including unit trusts)
Together these are referred to in the remainder of this guidance note as ‘non-natural persons’ or ‘NNPs’. The ATED charge applies regardless of where the NNP is established or resident and therefore applies to both UK and non-UK NNPs.
Those within the ATED rules are subject to an annual property tax based on the value of the property held, although certain reliefs and exemptions are available. ATED also brings with it additional filing requirements for those within the scope of the provisions, even in cases where no tax charge is actually payable.
The ATED rules are complex, and this guidance note outlines the main aspects of the regime only.
For further detail on the ATED regime, see Simon’s Taxes B6.7 and also HMRC’s annual tax on enveloped dwellings technical guidance.
Broadly, the ATED regime will apply where all of the following conditions are met:
an NNP holds a ‘chargeable interest’
that ‘chargeable interest’ is in one or more UK residential dwellings, referred to in the legislation as a ‘single-dwelling interest’ or ‘SDI’, and
the taxable value of the SDI is more than £500,000
‘Chargeable interest’ for these purposes is defined very broadly and includes any estate, interest, right
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.