Capital Taxes Exel Accountancy in Watford

Capital Taxes

Enveloped Dwellings

The annual tax on enveloped dwellings (ATED) applies where a residential property located in the UK is owned by a non-natural person such as; a company, partnership with a corporate member or a collective investment scheme. There are a large number of reliefs and exemptions from the charge, but where such a relief does not apply the ATED charge must be paid by 30 April within the year at the following rates:

Property value £	Annual charge 2020/21 £	Annual charge 2019/20 £
Up to 5,000,000	Nil	Nil
5,000,001 - 10,000,000	3,700	3,650
10,000,001 - 20,000,000	7,500	7,400
20,000,001 - 50,000,000	25,200	24,800
50,000,001 - 100,000,000	58,850	57,900
100,000,001 - 200,000,000	118,050	116,100
Morethan £200,000,001	236,250	232,350

Capital Gains Tax

The rates and annual exemption for capital gains tax are as follows:

	2020/21 (£)	2019/20 (£)
Below UK higher rate income tax band	10%	10%
Within UK higher and additional rate income tax bands	20%	20%
Tax Rate - Trust and Estates	20%	20%
Surcharges for residential property and caried interest	8%	8%
Exemptions
Annual exempt amount: Individuals, estate, etc.	£12,300	£12,000
Trust generally	£6,150	£6,000
Chattels gain limited to 5/3rds of proceeds exceeding	£6,000	£6,000

Entrepreneurs Relief

10% on lifetime limit of £1,000,000(£10,000,000 before 11 March 2020)

For trading businesses and companies (minimum 5% participation) held for at least 2years

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