GOV.UK
Guidance
Annual Tax on Enveloped Dwellings
- From:
- HM Revenue & Customs
- Part of:
- Stamp duty and other tax on property and Tax agent and adviser guidance
- Published:
- 20 March 2014
- Last updated:
- 13 April 2017, see all updates
Find out about Annual Tax on Enveloped Dwellings (ATED), what you need to pay and how to appoint an agent or adviser to act on your behalf.
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
- is in the UK
- was valued at more than:
- £2 million on 1 April 2012, or at acquisition if later, for returns from 2013 to 2014 onwards
- £1 million on 1 April 2012, or at acquisition if later, for returns from 2015 to 2016 onwards
- £500,000 on 1 April 2012, or at acquisition if later, for returns from 2016 to 2017 onwards
- is owned completely or partly by a:
- company
- partnership where one of the partners is a company
- collective investment scheme - for example a unit trust or an open ended investment vehicle
Returns must only be submitted on or after 1 April in any chargeable period.
There are reliefs and exemptions from the tax, which may mean you don’t have to pay.
Meaning of ‘dwelling’
Your property will be 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 interest properties.
Some properties aren’t 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.
In some circumstances you can also ask HM Revenue and Customs (HMRC) for a Pre-Return Banding Check (PRBC).
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 2017 to 31 March 2018
| Property value | Annual charge |
|---|---|
| More than £500,000 but not more than £1 million | £3,500 |
| More than £1 million but not more than £2 million | £7,050 |
| More than £2 million but not more than £5 million | £23,550 |
| More than £5 million but not more than £10 million | £54,950 |
| More than £10 million but not more than £20 million | £110,100 |
| More than £20 million | £220,350 |
Chargeable amounts for 1 April 2016 to 31 March 2017
| Property value | Annual charge |
|---|---|
| More than £500,000 but not more than £1 million | £3,500 |
| More than £1 million but not more than £2 million | £7,000 |
| More than £2 million but not more than £5 million | £23,350 |
| More than £5 million but not more than £10 million | £54,450 |
| More than £10 million but not more than £20 million | £109,050 |
| More than £20 million | £218,200 |
Chargeable amounts for 1 April 2015 to 31 March 2016
| Property value | Annual charge |
|---|---|
| More than £1 million but not more than £2 million | £7,000 |
| More than £2 million but not more than £5 million | £23,350 |
| More than £5 million but not more than £10 million | £54,450 |
| More than £10 million but not more than £20 million | £109,050 |
| More than £20 million | £218,200 |
Chargeable amounts for chargeable period 1 April 2014 to 31 March 2015
| Property value | Annual charge |
|---|---|
| More than £2 million but not more than £5 million | £15,400 |
| More than £5 million but not more than £10 million | £35,900 |
| More than £10 million but not more than £20 million | £71,850 |
| More than £20 million | £143,750 |
Chargeable amounts for chargeable period 1 April 2013 to 31 March 2014
| Property value | Annual charge |
|---|---|
| More than £2 million but not more than £5 million | £15,000 |
| More than £5 million but not more than £10 million | £35,000 |
| More than £10 million but not more than £20 million | £70,000 |
| More than £20 million | £140,000 |
Section 6 and 7 of the ATED technical guidance tells you more about how to work out the charge if:
- you only own the dwelling for part of a year
- you claim a relief for part of the year
When you buy your property you may also have to pay Stamp Duty Land Tax. There’s a higher rate for corporate bodies.
If you sell your property you may also have to pay ATED-related Capital Gains Tax.
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 new ATED online service, you can access the old return or the Relief Declaration Return through the Returns Notice.
Penalties and appeals
Penalties
You could be charged a penalty and interest if:
- you don’t file your return on time
- you fail to pay on time
- 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:
HM Revenue & Customs
Solicitors Office and Legal Services
Reviews and Litigation
SO790
Newcastle Upon Tyne
NE98 1ZZ
Get help
If you need any help or further information you can call the ATED helpline.
Document information
Published: 20 March 2014
Updated: 13 April 2017
- Section added on penalties and appeals.
- Section added on how to submit your return and pay.
- Section added on registering for the new ATED online service.
- Chargeable amounts for 1 April 2017 to 31 March 2018 added to the page.
- Added new ATED band (£500,000) for 2016 to 2017 in the 'overview section'.
- Information added to explain the new rate band of £500,000 to £1 million, to be introduced from 1 April 2016
- This guide has been reviewed and updated to reflect recent process changes and the introduction of the new Relief Declaration Return.
- The postal address for appeals has been updated.
- Information added about increased charges from 1 April 2015 and filing obligations.
- First published.