Annual Tax on Enveloped Dwellings

Overview

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 — find out the meaning of ‘dwelling’ in the next section
• 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.

Meaning 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.

Find out about valuing different types of properties for example mixed use, more than one dwelling and multiple interests in properties.

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’.

Value 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.

There are revaluation dates every 5 years from 1 April 2012.

Revaluation date	Chargeable periods that apply (1 April to 31 March)
1 April 2012	2013 to 2014 2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018
1 April 2017	2018 to 2019 2019 to 2020 2020 to 2021 2021 to 2022 2022 to 2023
1 April 2022	2023 to 2024 2024 to 2025 2025 to 2026 2026 to 2027 2027 to 2028

For the 5 chargeable periods from 2023, the revaluation date is 1 April 2022.

You must revalue the properties you owned on or before 1 April 2022 using that date. If you acquire property after 1 April 2022, use the acquisition date.

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 20252026 to 31 March 20262027

Property value	Annual charge
More than £500,000 up to £1 million	£4,450£4,600
More than £1 million up to £2 million	£9,150£9,450
More than £2 million up to £5 million	£31,050£32,200
More than £5 million up to £10 million	£72,700£75,450
More than £10 million up to £20 million	£145,950£151,450
More than £20 million	£292,350£303,450

Chargeable amounts for 1 April 20242025 to 31 March 20252026

Property value	Annual charge
More than £500,000 up to £1 million	£4,400£4,450
More than £1 million up to £2 million	£9,000£9,150
More than £2 million up to £5 million	£30,550£31,050
More than £5 million up to £10 million	£71,500£72,700
More than £10 million up to £20 million	£143,550£145,950
More than £20 million	£287,500£292,350

Chargeable amounts for 1 April 20232024 to 31 March 20242025

Property value	Annual charge
More than £500,000 up to £1 million	£4,150£4,400
More than £1 million up to £2 million	£8,450£9,000
More than £2 million up to £5 million	£28,650£30,550
More than £5 million up to £10 million	£67,050£71,500
More than £10 million up to £20 million	£134,550£143,550
More than £20 million	£269,450£287,500

Check chargeable amounts prior to 1 April 20232024.

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:

• Stamp Duty Land Tax when you buy your property — there’s a higher rate for corporate bodies
• ATED-related Capital Gains Tax or Corporation Tax if you sell your property

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 Section 3 of the ATED returns notice.

Penalties and appeals

Penalties

You could be charged a penalty and interest if:

• you do not file your return on time
• you do not pay on time — find out more in CH155400 of the HMRC Compliance Handbook
• you submit an inaccurate return

Appeals

If you disagree with an HMRC decision about your return, for example a penalty or determination, you may be able to challenge it by appealing.

You have 30 days from the date of the decision to write and tell HMRC the grounds on which you’re appealing.

Write to:

Get help

If you need any help or further information you can call the ATED Helpline.