This is a freeview 'At a glance' guide to the Annual Tax on Enveloped Dwellings or ATED.
What is ATED? When does ATED apply? What relief is available and how is it claimed? What are the ATED filing requirements?
Subscribers your detailed guide to this topic 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 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:
See Annual Tax on Enveloped Dwellings (ATED) for how ATED applies to trusts.
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 years up to and including 2017-18 the taxable value is:
For 2018-19 and the following four years the taxable value is:
Pre-return banding checks (PRBC)
What is the ATED charge?
The annual charge is as follows (payable in advance):
ATED charge for the year commencing: Property value |
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 |
£3,800 |
£3,700 |
£3,700 |
£3,650 |
£3,600 |
£3,500 |
£3,500 |
n/a |
n/a |
n/a |
£1m-£2m |
£7,700 |
£7,500 |
£7,500 |
£7,400 |
£7,250 |
£7,050 |
£7,000 |
£7,000 |
n/a |
n/a |
£2m - £5m |
£26,050 |
£25,300 |
£25,200 |
£24,800 |
£24,250 |
£23,550 |
£23,350 |
£23,350 |
£15,400 |
£15,000 |
£5m - £10m |
£60,900 |
£59,100 |
£58,850 |
£57,900 |
£56,550 |
£54,950 |
£54,450 |
£54,450 |
£35,900 |
£35,000 |
£10m-£20m |
£122,250 |
£118,600 |
£118,050 |
£116,100 |
£113,400 |
£110,110 |
£109,050 |
£109,050 |
£71,850 |
£70,000 |
£20m+ |
£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
Companies may decide to de-envelope a property, that is return it to shareholders, if so then they should consider the tax consequences. See De-enveloping property.
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:
The property development relief applies where:
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 schedule 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
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