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An at a glance freeview guide to the Annual Tax on Enveloped Dwellings or ATED. Subscribers your detailed guide to this topic Annual Tax on Enveloped Dwellings (ATED).

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).

At a glance

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 owning a dwelling. A dwelling is a property that is:

When is a Property Owned?

For ATED to apply your company must have a “chargeable interest” in a property.

The general rule is that chargeable interest means:

Non-natural persons (NNP)

A 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 2019

1 April 2018

1 April 2017

     

1 April 2016

1 April 2015

1 April 2014

1 April 2013

£500k-£1m

£3,650

£3,600

£3,500

£3,500

n/a

n/a

n/a

£1m-£2m

£7,400

£7,250

£7,050

£7,000

£7,000

n/a

n/a 

£2m - £5m

£24,800

£24,250

£23,550 

£23,350

£23,350

£15,400

£15,000 

£5m - £10m

£57,900

£56,550

£54,950

£54,450

£54,450

£35,900

£35,000

£10m-£20m

£116,100

£113,400

£110,110

£109,050

£109,050

£71,850

£70,000

£20m+

£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:

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