Capital Taxes

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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Exel accountants is an accountancy firm based in Watford Hertfordshire. Exel accountants are a firm of qualified and experienced accountants specialising in providing accounting and taxation services to new and established businesses.

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Exel Accountancy Ltd
31 The metro Centre,
Dwight Road,
Watford, WD18 9SB
0192 351 7300
info@exelaccountancy.co.uk
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