If you pay Annual Tax on Enveloped Dwellings (ATED) when you sell the property you'll need to pay Capital Gains Tax.
You’ll need to pay Capital Gains Tax (CGT) called ATED-related Capital Gains Tax if you sell a residential property which is completely or partly owned by a:
- company that is a partner in a partnership
- collective investment vehicle, for example a unit trust or an open-ended investment company
The ATED-related Capital Gains Tax threshold is £500,000 for sales on or after 6 April 2016. Before then, it was:
- £2 million for proceeds of sales from 6 April 2013 to 5 April 2015
- £1 million for proceeds of sales from 6 April 2015 to 5 April 2016
You don’t pay ATED or ATED-related Capital Gains Tax if you own the property direct, rather than through a company.
If you’re a non-resident company find out more about CGT when selling (or disposing) of a UK residential property.
Work out your ATED-related Capital Gains Tax
How much your company will pay depends on how long it has:
- owned the property
- been paying ATED on the property
You can find examples on how to calculate payment in the CGT manual.
Report your ATED-related Capital Gains Tax
You should tell HM Revenue and Customs if you have an ATED-related Capital Gain by completing the ATED-related Capital Gains Tax return form.
Pay your ATED-related Capital Gains Tax
You’ll need to pay by 31 January following the end of the tax year.
Find out the ways to pay your ATED-related Capital Gains Tax.
Published: 3 November 2014
Updated: 7 June 2017
- The 'Overview' section has been updated.
- The tax threshold for Annual Tax on Enveloped Dwellings related Capital Gains Tax will reduce over 2 years from 6 April 2015.
- First published.