ATED is an annual tax payable mainly by companies that own UK dwelling (residential property) valued at more than £500,000.
ATED applies to enveloped dwellings unless a relief is claimed. Initially it only applied to properties valued at more than £2 million on 1 April 2012, but from 1 April 2015 the threshold was reduced to £1 million with a further reduction to £500,000 with effect from 1 April 2016.
The ATED only applies to UK residential property that is held partly or fully by a non-natural person “NNP” For example; Company, partnership where any of the partners is a company, collective investment scheme – e.g. a unit trust or an open ended investment vehicle
It does not apply to residential property owned by individuals.
An annual ATED return must be filed in advance by 30 April each year with payment due by the same date.
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.
Some properties are not classed as dwellings. These include:
- guest houses
- hotels
- care homes
- hospitals
- boarding school accommodation
- student halls of residence
- military accommodation
- prisons
What you should do next
Our Tax team have a vast amount of experience in the property sector and welcome the opportunity to help you. Please contact a member of our Tax team.