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?
Danielle Bennett or Chantelle Le Tissier
Email [email protected] or [email protected]