Budget Summary 2015/16

Stamp Duty Land Tax, Stamp Duty & ATED


There have been significant changes to SDLT in recent years, culminating in a significant reform of the rates which took effect in December 2014. There were only minor technical changes to the duty in the March Budget.

Annual tax on enveloped dwellings (ATED)

ATED was introduced for 2013/14 to counter avoidance of SDLT by holding property through corporate structures. It has applied a flat rate charge based on bands of value to certain residential property in the UK worth over 2m which is owned by a 'non-natural person' such as a company.

The rates of ATED have increased 50% above inflation for 2015/16, and the scope of the tax is extended from April 2015 to cover 'enveloped' residential properties with a value over 1m. From April 2016 properties with values over 500,000 will be subject to the tax.