The Annual Tax on Enveloped Dwellings (“ATED”) was introduced in April 2013 as part of a series of measures designed to discourage corporate ownership of UK residential property.
This annual charge is imposed on non-natural persons* owning UK residential property and originally applied to properties worth more than £2 million. However, from April 2016, properties valued at more than £500,000 are caught by the ATED regime.
|
Property Value at 1 April 2012 |
ATED from 1 April 2016 |
|
Less than £500,000 |
N/A |
|
£500,000 - £1 million |
£3,500 |
|
£1 million - £2 million |
£7,000 |
|
£2 million - £5 million |
£23,350 |
|
£5 million - £10 million |
£54,450 |
|
£10 million - £20 million |
£109,050 |
|
More than £20 million |
£218,200 |
*Definition of non-natural persons is Companies, Partnerships with one or more corporate partner, (Partnerships comprising of individuals are not affected) and collective investment schemes
There are a number of reliefs available, for example:
- Property development and trading businesses
- Property rental business where the property is let to an unconnected third party
- Farmhouses
- Properties open to the public
- Property occupied by certain partners or employees
If reliefs apply, this must be claimed each year via submitting an ATED Return