Certain
types of properties are not within the scope of the tax, such as hotels,
student halls of residence, boarding school accommodation blocks, care homes
and similar and there is also relief available for historic houses that are
open to the public and working farmhouses where a farming trade is carried out
on a commercial basis.
Valuation
of the property is as at 1 April 2012 on a fair market basis or when it was
bought, if later. This valuation will be used for 5 years and
then the property will need to be re-valued as at 1 April 2017, which will be
the basis used for the ATED tax charge as at 1 April 2018.
The ATED is
banded, based on valuation:
Value of Property
|
Tax
|
£2 million to
£5 million
|
£15,000
|
£5 million to
£10 million
|
£35,000
|
£10 million
to £20 million
|
£70,000
|
£20 million
and over
|
£140,000
|