Annual Tax on Enveloped Dwellings (ATED)

Apr. 24, 2017, 2:05pm

The Annual Tax on Enveloped Dwellings (ATED) was introduced from 1 April 2013 as part of a package of measures to tackle tax avoidance.

Picture of a parrot
The Parrot is called Mango and lives in Key Largo, Florida. Well what picture would you suggest for ATED?!

ATED is an annual tax payable, mainly by companies, that own UK residential property valued at more than £500,000.

The ATED chargeable period runs from 1 April to 31 March and the amount of tax charged is by reference to a banding system based on the value of the property. There are a number of reliefs where a property is used for commercial purposes.

In the 2016 Autumn Statement it was announced that the 2017 to 2018 annual charges will be increased by CPI. The new charges apply from 1 April 2017.

The table below shows the annual charge amounts for the 2016 to 2017 chargeable period and the revised chargeable amounts for 2017 to 2018 chargeable period beginning on 1 April 2017.

Property ValueAnnual chargeable amounts for the 2016 to 2017 chargeable periodAnnual chargeable amounts for the 2017 to 2018 chargeable period
£500,001 to £1 million£3,500 £3,500
£1,000,001 to £2 million£7,000 £7,050
£2,000,001 to £5 million£23,350 £23,550
£5,000,001 to £10 million£54,450 £54,950
£10,000,001 to £20 million£109,050 £110,100
£20,000,0001 and over£218,200£220,350

Do you think that ATED may affect you?  We can help.

  • We can assess whether your property/ circumstances are subject to ATED
  • Assist with the registration and filing of ATED returns
  • Provide advice on available options to take a property out of the ATED charge
  • Assist you in considering tax efficient structures for acquiring UK property interests

If you have a query or want to talk about this or any other matter, get in touch today.

We Think. You Gain.


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