Guidance

Annual Tax on Enveloped Dwellings

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 (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 don’t 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 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 using a valuation date.

In some circumstances you can also ask HM Revenue and Customs (HMRC) for a Pre-Return Banding Check (PRBC).

For the chargeable period beginning 1 April 2018, the 1 April 2012 valuation date is superseded by the 1 April 2017 valuation date. You should therefore revalue your property as at 1 April 2017 if you owned your property on or before that 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 2018 to 31 March 2019

Property value Annual charge
More than £500,000 up to £1 million £3,600
More than £1 million up to £2 million £7,250
More than £2 million up to £5 million £24,250
More than £5 million up to £10 million £56,550
More than £10 million up to £20 million £113,400
More than £20 million £226,950

Chargeable amounts for 1 April 2017 to 31 March 2018

Property value Annual charge
More than £500,000 up to £1 million £3,500
More than £1 million up to £2 million £7,050
More than £2 million up to £5 million £23,550
More than £5 million up to £10 million £54,950
More than £10 million up to £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 up to £1 million £3,500
More than £1 million up to £2 million £7,000
More than £2 million up to £5 million £23,350
More than £5 million up to £10 million £54,450
More than £10 million up to £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 up to £2 million £7,000
More than £2 million up to £5 million £23,350
More than £5 million up to £10 million £54,450
More than £10 million up to £20 million £109,050
More than £20 million £218,200

Chargeable amounts for 1 April 2014 to 31 March 2015

Property value Annual charge
More than £2 million up to £5 million £15,400
More than £5 million up to £10 million £35,900
More than £10 million up to £20 million £71,850
More than £20 million £143,750

Chargeable amounts for 1 April 2013 to 31 March 2014

Property value Annual charge
More than £2 million up to £5 million £15,000
More than £5 million up to £10 million £35,000
More than £10 million up to £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 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 ATED online service, further information can be found in the ATED returns notice.

Penalties and appeals

Penalties

You could be charged a penalty and interest if:

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 and 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.

Published 20 March 2014
Last updated 21 February 2018 + show all updates
  1. Chargeable amounts for 1 April 2018 to 31 March 2019 have been added to the page.
  2. Section added on penalties and appeals.
  3. Section added on how to submit your return and pay.
  4. Section added on registering for the new ATED online service.
  5. Chargeable amounts for 1 April 2017 to 31 March 2018 added to the page.
  6. Added new ATED band (£500,000) for 2016 to 2017 in the 'overview section'.
  7. Information added to explain the new rate band of £500,000 to £1 million, to be introduced from 1 April 2016
  8. This guide has been reviewed and updated to reflect recent process changes and the introduction of the new Relief Declaration Return.
  9. The postal address for appeals has been updated.
  10. Information added about increased charges from 1 April 2015 and filing obligations.
  11. First published.