Tax

Annual Tax on Enveloped Dwellings (ATED)

Find out about ATED, what you need to pay and how to appoint an agent or adviser to act on your behalf.

What is ATED and does it apply to you?

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.

 

You’ll need to complete an ATED return if your property:

 

  • is a dwelling
  • is in the UK

 

was valued at more than:

    • £2 million (for returns from 2013 to 2014 onwards)
    • £1 million (for returns from 2015 to 2016 onwards)
    • £500,000 (for returns from 2016 to 2017 onwards)

 

is owned completely or partly by a:

    • company
    • partnership where any of the partners is a company
    • ­collective investment scheme – for example a unit trust or an open-ended investment vehicle


Returns must be submitted on or after 1 April in any chargeable period.


There are reliefs and exemptions from the tax, which may mean you do not have to pay.

Definition of ‘dwelling’

Your property is a dwelling if all or part of it is used, or could be used, as a residence, for example a house or flat. It includes any gardens, grounds and buildings within them.

 

Some properties are not classed as dwellings. These include:

 

  • hotels
  • guest houses
  • boarding school accommodation
  • hospitals
  • student halls of residence
  • military accommodation
  • care homes
  • prisons


Section 19 of the ATED technical guidance explains more about the meaning of ‘dwelling’.

Valuing your property

To work out what you need to pay you’ll need to value your property using a valuation date.

In some circumstances you can also ask HMRC for a Pre-Return Banding Check (PRBC).

For the 5 chargeable periods beginning from 1 April 2018, the 1 April 2012 valuation date was superseded by the 1 April 2017 valuation date. Properties owned on or before 1 April 2017 should be revalued using that date. If you acquired the property after 1 April 2017 the later date is to be used.

What you need to pay

The amount you’ll need to pay is worked out using a banding system based on the value of your property.

Chargeable amounts for 1 April 2019 to 31 March 2020

Property value

Annual charge

More than £500,000 up to £1 million

£3,650

More than £1 million up to £2 million

£7,400

More than £2 million up to £5 million

£24,800

More than £5 million up to £10 million

£57,900

More than £10 million up to £20 million

£116,100

More than £20 million

£232,350


Chargeable amounts for 1 April 2018 to 31 March 2019

Property value

Annual charge

More than £500,000 up to £1 million

£3,600

More than £1 million up to £2 million

£7,250

More than £2 million up to £5 million

£24,250

More than £5 million up to £10 million

£56,550

More than £10 million up to £20 million

£113,400

More than £20 million

£226,950


Chargeable amounts for 1 April 2017 to 31 March 2018

Property value

Annual charge

More than £500,000 up to £1 million

£3,500

More than £1 million up to £2 million

£7,050

More than £2 million up to £5 million

£23,550

More than £5 million up to £10 million

£54,950

More than £10 million up to £20 million

£110,100

More than £20 million

£220,350

 

Section 6 and 7 of the ATED technical guidance tells you more about how to work out the charge if:

  • you own the dwelling for part of a year
  • you claim a relief for part of the year

You may also have to pay:

 

Submit your return and pay

You can use the ATED online service to submit your return and appoint an agent.

You’ll then need to pay anything you owe.

Other ways to submit your return

If you’re unable to use the ATED online service, further information can be found in the ATED returns notice.

Penalties

You could be charged a penalty and interest if:


If you need help with your ATED Return, contact DansonOsborne Accountants on 01908 965003