What is ATED? When does ATED apply? What relief is available and how is it claimed? What are the ATED filing requirements?

This is a freeview 'At a glance' guide to the Annual Tax on Enveloped Dwellings or ATED.

Subscribers: for your detailed guide to this topic see Annual Tax on Enveloped Dwellings (ATED).

At a glance

The Annual Tax on Enveloped Dwellings (ATED) is an annual charge on UK dwellings held by a Non-Natural Person (NNP) e.g. a company.

The ATED applies to properties over a specific value, unless a relief is claimed. It does not apply to individuals. 

What is a dwelling?

ATED is only charged to Non-Natural Persons (NNP) owning a dwelling. A dwelling is a property that is:

When is a property owned?

For ATED to apply the NNP must have a 'chargeable interest' in a property.

The general rule is that chargeable interest means:

Non-Natural Person (NNP)

An NNP is: 

Taxable value

The taxable value is the value of the property at the applicable valuation date.

The ATED applies if a dwelling has a taxable value in excess of:

£500,000

From 1 April 2016 onwards

£1,000,000

From 1 April 2015

£2,000,000

From 1 April 2014

Valuation date

For 2023-24 and the following four years the taxable value is:

For 2018-19 and the following four years the taxable value is:

For years up to and including 2017-18 the taxable value is:

Pre-return banding checks (PRBC)

What is the ATED charge?

The annual charge is as follows (payable in advance):

ATED year:

Value:

1 April 2024

1 April 2023

1 April 2022

1 April 2021

1 April 2020

1 April 2019

1 April 2018

1 April 2017

     

1 April 2016

1 April 2015

1 April 2014

1 April 2013

£500k-£1m

£4,400

£4,150

£3,800

£3,700

£3,700

£3,650

£3,600

£3,500

£3,500

n/a

n/a

n/a

£1m-£2m

£9,000

£8,450

£7,700

£7,500

£7,500

£7,400

£7,250

£7,050

£7,000

£7,000

n/a

n/a 

£2m - £5m

£30,550

£28,650

£26,050

£25,300

£25,200

£24,800

£24,250

£23,550 

£23,350

£23,350

£15,400

£15,000 

£5m - £10m

£71,500

£67,050

£60,900

£59,100

£58,850

£57,900

£56,550

£54,950

£54,450

£54,450

£35,900

£35,000

£10m-£20m

£143,550

£134,550

£122,250

£118,600

£118,050

£116,100

£113,400

£110,110

£109,050

£109,050

£71,850

£70,000

£20m+

£287,500

£269,450

£244,750

£237,400

£236,250

£232,350

£226,950

£220,350 

£218,200

£218,200

£143,750

£140,000

Acquisitions, disposals and improvements

De-enveloping

ATED Reliefs and excluded dwellings

See Annual Tax on Enveloped Dwellings (ATED) for details of how to claim relief from ATED.  

Relief applies and there is no tax charge for dwellings that are:

Relief for property development applies where the interest is held exclusively for the purpose of developing and reselling the land in the course of the trade. See Annual Tax on Enveloped Dwellings (ATED) for the other conditions which apply here.

You cannot claim relief if the property is occupied by a non-qualifying individual. See Annual Tax on Enveloped Dwellings (ATED) for who will be classed as a non-qualifying individual in respect of your property.

Relief is also available for qualifying housing co-operatives. This relief has been introduced in 2021 with a retrospective effect from 1 April 2020.

Exemptions

The following are exempt from ATED and do not have to submit a return or claim a relief:

ATED penalties

These follow the penalty regimes under schedules 55 and 56 FA 2009 for late filing and late payment regimes and there are also penalties for error or mistake leading to a loss of tax under schedule 24 FA 2007. 

Tax relief for the ATED charge


Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter.