If you own residential dwelling in the UK held in a company and property is worth more than £500,000 you are required to submit an Annual Tax on Enveloped Dwellings (ATED) return every year on 1st of April.
ATED return applies to all domiciled and non-domiciled companies holding residential dwellings in the United Kingdom. The ATED year runs from 31st of March to 1st of April and the company must file ATED return by 30th of April in order to avoid incurring penalties from HMRC.
You will need to complete an annual ATED return if you meet one of the following conditions:
- Property is a residential dwelling
- Located in the UK
- Value of the Property is more than:
£2 million (for ATED returns from 2013 to 2014)
£1 million (for ATED returns from 2015 to 2016)
£500,000 (for ATED returns from 2016 to 2017 and onwards)
- The dwelling is owned completely or partially by:
Partnership with corporate partner
Collective investment scheme
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Why You Should Obtain ATED Valuation?
Avoid HMRC Penalties
If you do not submit the valuation of the property by the deadline you will incur late filing fees.
Obtaining ATED Valuation early allows you to stay on top of your tax obligations and budget for a tax bill in advance.
Minimise ATED Charge
Using our valuation expertise we can accurately assess the value of the property and ensure that you’re not overpaying on ATED charge.
|Annual ATED Charge:||01/04/2019 –
|£500,000 to £1m||£3,650||£3,600||£3,500||£3,500||Not Due||Not Due||Not Due|
|£1m to £2m||£7,400||£7,250||£7,050||£7,000||£7,000||Not Due||Not Due|
|£2m to £5m||£24,800||£24,250||£23,550||£23,350||£23,350||£15,400||£15,000|
|£5m to £10m||£57,900||£56,550||£54,950||£54,450||£54,450||£35,900||£35,000|
|£10m to £20m||£116,100||£113,400||£110,100||£109,050||£109,050||£71,850||£70,000|
|More than £20m||£232,350||£226,950||£220,350||£218,200||£218,200||£143,750||£140,000|
ATED Valuation Experts
Frequently Asked Questions
What is a dwelling?
The property is a dwelling if all or part of it is used for residence. For instance, it could be a house or a flat. The dwelling also includes all areas belonging to the property such as gardens, driveways and other buildings within the same title.
Certain types of residential accommodation are specifically excluded from the definition of ‘dwelling’ these are:
- Guest houses
- Boarding school accommodation
- Student halls
- Military accommodation
- Care homes
Are there any ATED reliefs available?
Yes, ATED relief can be claimed if the dwelling meets the set relief conditions.
ATED Relief may be claimed if:
- Property is used for property rental business this includes a period where the property is being sold
- Dwelling is open to the public at least 28 days per year.
- Property is being developed for sale
- Property is owned by property trading business for resale
- Property is repossessed by the financial institution
- Property is bought under a regulated home reversion plan
- Being used to provide living accommodation to company employees and partners
- Used as a farmhouse and occupied by farmworker
- Property belongs to a registered provider of social housing
Are there any ATED exemptions available?
There are a number of exemptions available from ATED but the vast majority is reserved to charities and public bodies.
ATED exemptions are available for:
- Registered charities where the property is used for charitable purposes
- Some public bodies are exempt
- Bodies that are established for national purposes
What is current ATED valuation date?
If you have bought property on or before the 1st of April 2017 then you need to obtain property valuation as at the 1st of April 2017.
However, if you purchased the property after 1st of April 2017 then valuation will be the price you’ve paid.
The government has set up specific valuation dates in order to minimise the valuations required. For purposes of ATED property needs to be revalued every 5 years. The next revaluation date will be in 2022/2023.