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Annual Tax on Enveloped Dwellings (ATED)

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Annual Tax on Enveloped Dwellings, also known as ATED, is an annual tax payable mainly by companies that own high value UK residential property.

You may have to pay ATED if your company, partnership or collective investment scheme owns, either completely or partly, residential property worth more than £500,000.

 A return must be made to HMRC each year but some property is exempt from the tax.  If you meet the conditions for an exemption then there is no need for you to file a return.

There are several reliefs available that mean you might not have to pay any ATED on your property or may reduce the amount you have to pay.  The various reliefs are not given automatically and a claim has to be submitted to HMRC.  

What you will 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 2019 to 31 March 2020

Property ValueAnnual Charge
More than £500,000 up to £1 million£3,650
More than £1 million up to £2 million£7,400
More than £2 million up to £5 million£24,800
More than £5 million up to £10 million£57,900
More than £10 million up to £20 million£116,100
More than £20 million£232,350