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 2012 or acquisition | 2017/18 |
| More than £500,000 but not more than £1m | £3,500 |
| More than £1m but not more than £2m | £7,060 |
| More than £2m but not more than £5m | £23,550 |
| More than £5m but not more than £10m | £54,950 |
| More than £10m but not more than £20m | £110,100 |
| More than 20m | £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. Properties will be revalued with effect from 1 April 2017 for use in the 2018/19 ATED year.
Disposals of ATED property are potentially subject to capital gains tax at 28%.
