Enveloped properties and non-residents’ gains

KEY POINTS

• The thresholds for the annual tax on enveloped dwellings reduced from £2m to £500 000.
• Non-natural persons owning property in the UK must file an ATED return.
• ATED gains are charged at 28%.
• A non-natural person can fall within the ATED and non-resident capital gains tax regimes.

The government has spent several years targeting UK homes that are not used as a person’s main residence. Individuals who own more than one property now face various potential charges:

• the additional 3% stamp duty land tax cost;
• the loss of the 10% wear and tear allowance; and
• the loan interest restriction for rentals.

‘Non-natural persons’ have to contend with many forms as well as the increased stamp duty land tax cost of 15% if...