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Annual Tax on Enveloped Dwellings (ATED)

UK Property Fact Sheet - Annual Tax on Enveloped Dwellings (ATED)

This tax applies where companies own high value UK properties.

This fact sheet is a summary only. Please contact us for further advice if you think this issue affects you.

What is ATED?

It is a form of stamp duty applied annually to high value UK property owned within a company. It is designed to discourage the ownership of property in a corporate vehicle.

What is high value?

This threshold began at 1 April 2012 at £2m but has reduced to £1m from 1 April 2015 and will reduce again at 1 April 2016 to £500k.

Are there any exemptions?

Yes for commercially let property or property being developed.

So who does it mainly affect?

Those who own a second home in the UK through a corporate structure.  Properties that are used by beneficial owners, or their connected parties (or are available to be used by them) are caught by this legislation.

What should I do?

Complete an annual ATED return and pay the required charge by 30 April each year.

OR complete an annual exemption declaration by 30 April each year.

What will I pay?

This depends on the value of the property.  The charges begin at £3.5k and go up to £143k per year for the range £500k to £20m.  These charges will be going up in the next tax year.

Who should I contact?

Telephone 253050

Danielle Bennett or Chantelle Le Tissier

Email [email protected] or [email protected]