Most residential properties (dwellings) are owned directly by individuals. But in some cases a dwelling may be owned by a company, a partnership with a corporate member or other collective investment vehicle. In these circumstances the dwelling is said to be 'enveloped' because the ownership sits within a corporate 'wrapper' or 'envelope'.
ATED is a tax payable each year by companies on high value residential property (a dwelling).
| Property value at 1 April 2017 or acquisition | 2018/19 | 2017/18 |
| More than £500,000 but not more than £1m | £3,600 | £3,500 |
| More than £1m but not more than £2m | £7,250 | £7,050 |
| More than £2m but not more than £5m | £24,250 | £23,550 |
| More than £5m but not more than £10m | £56,550 | £54,950 |
| More than £10m but not more than £20m | £113,400 | £110,100 |
| More than 20m | £226,950 | £220,350 |
Most residential properties (dwellings) are owned directly by individuals. But in some cases a dwelling may be owned by a company, a partnership with a corporate member or other collective investment vehicle. In these circumstances the dwelling is said to be 'enveloped' because the ownership sits within a corporate 'wrapper' or 'envelope'.
ATED is a tax payable each year by companies on high value residential property (a dwelling).
An ATED tax return is needed for your property if all of the following apply:
There are reliefs that could reduce the tax completely but you can only claim them if you complete and send in a return.
There are also a number of exemptions from the tax, most significantly, charitable companies using the dwelling for charitable purposes, which mean you may not have to file a return.
The amount of ATED is worked out using a banding system based on the value of your property. You need to find out which band the value of your property falls into.
Disposals of ATED property are subject to capital gains tax at 28% unless one of the reliefs apply, in which case normal rates will be charged (for most companies 19%).
