UK and International Tax news

ATED Rates For 2016-17

Tuesday 3rd May 2016

The Treasury has recently published the Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2016 [SI2016/401] which sets out the annual chargeable amounts of ATED by taxable value of an interest on the relevant day for the chargeable period 1 April 2016 to 31 March 2017.

 

Taxable Value                                                         ATED

£500,001 to £1m                                                    £3,500

£1,000,001 to £2m                                                 £7,000

£2,000,001 to £5m                                               £23,350

£5,000,001 to £10m                                             £54,450

£10,000,001 to £20m                                         £109,050

Over £20m                                                         £218,200

The amounts of tax charged for each chargeable period beginning on or after 1 April are determined by reference to the “all items” Consumer Prices Index (CPI) as published by the Office of National Statistics (ONS) for the previous September. Where the CPI is higher than it was for the previous September, the amounts of tax for the next chargeable period are increased by the same percentage increase, rounding down to the nearest multiple of £50. However, the September 2015 “all items” CPI as published by the ONS was -0.1% which means that the annual chargeable amounts for the chargeable period beginning 1st April 2016 remains unchanged.

If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.

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