If you pay Annual Tax on Enveloped Dwellings (ATED) when you sell the property you'll need to pay Capital Gains Tax.
ATED-related Capital Gains Tax (CGT) is payable mainly by companies that own UK residential property valued at more than £500,000.
You’ll need to complete an ATED-related CGT return if your property:
- is a dwelling
- is in the UK
- was valued at more than:
- £2 million (for returns from 6 April 2013 to 5 April 2015)
- £1 million (for returns from 6 April 2015 to 5 April 2016)
- £500,000 (for returns from 6 April 2016 to 5 April 2017 onwards)
- is owned completely or partly by a:
- partnership where any of the partners is a company
- collective investment scheme - for example a unit trust or an open ended investment vehicle
Returns must be submitted by 31 January after the chargeable period.
You don’t pay ATED or ATED-related CGT 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 CGT
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.