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. 

  • ATED is payable annually in advance by 30 April and a return must also be filed by that date.
  • The ATED is based on the taxable value of the property:
  • Companies within the ATED rules can register themselves or appoint an agent to act on their behalf.

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:

  • any estate, interest, right or power in or over land in the UK
  • the benefit of an obligation, restriction or condition affecting the value of any of the above.

Non-Natural Person (NNP)

A NNP is: 

  • A company.
  • A partnership with a corporate partner.
  • A collective investment scheme .

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:

  • The 1 April 2012 valuation, or if acquired after 1 April 2012, its cost.

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

  • Its value at 1 April 2017, or if acquired after 1 April 2017, its cost.

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 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

£3,700

£3,700

£3,650

£3,600

£3,500

£3,500

n/a

n/a

n/a

£1m-£2m

£7,500

£7,500

£7,400

£7,250

£7,050

£7,000

£7,000

n/a

n/a 

£2m - £5m

£25,300

£25,200

£24,800

£24,250

£23,550 

£23,350

£23,350

£15,400

£15,000 

£5m - £10m

£59,100

£58,850

£57,900

£56,550

£54,950

£54,450

£54,450

£35,900

£35,000

£10m-£20m

£118,600

£118,050

£116,100

£113,400

£110,110

£109,050

£109,050

£71,850

£70,000

£20m+

£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:

  • Being redeveloped or held as stock for resale by a property developer.
  • Held by property rental businesses and let out to a third party on a commercial basis.
  • Farmhouses occupied by working farmers.
  • Held by trading companies for the use of employees in the trade.
  •  And in various other situations, see Annual Tax on Enveloped Dwellings (ATED) for a full list.
  • The property development relief applies where:
  • You cannot claim relief if the property is occupied by a non-qualifying individual.
    • 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.
  • Relief is also available for qualifying housing co-operatives.  This relief has been introduced in 2021 with 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:

  • Charitable companies holding a property for charitable purposes.
  • Public bodies.
  • Bodies established for National Purposes (e.g. the trustees of the British Museum)

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


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 unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad