Capital Gains Tax on high value residential property
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.