Annual Tax on Enveloped Dwellings (ATED)
ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000. The current charges range from £3,800 to £244,750 depending on the value of the property. Companies can claim relief from the charge if the property is let to a third party on a commercial basis and in some other circumstances.
"WHILE THE REGISTER OF OVERSEAS ENTITIES IS A RELATIVELY NEW REQUIREMENT, THE UK TAX AUTHORITIES HAVE INDICATED THAT IT IS AN AREA THEY WILL BE ENFORCING AND STRICT PENALTIES WILL APPLY FOR NON-COMPLIANCE."
Stamp Duty Land Tax (SDLT)
Stamp Duty is payable on the purchase of property. Different rates apply to commercial and residential properties and are calculated using a tiered basis. The actual SDLT payable can vary based on the circumstances and the availability of reliefs and appropriate legal advice should be taken.
Value Added Tax (VAT)
Generally, land is exempt from VAT, however, particularly with respect to commercial property, the owner can opt to tax the property and charge VAT on rental income and on the subsequent disposal of the property. Where a property is within the VAT regime, VAT can be reclaimed on relevant expenditure. The current rate of VAT is 20% with reduced rates applica- ble to certain types of construction work. VAT returns are generally required to be submitted, and payments made, on a quarterly basis.
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