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ATED is an annual tax payable by companies that own or part own UK residential property valued at more than £500,000. See our ATED valuation page and 7 frequently asked questions and their answers below to ensure you stand the best chance of submitting a correct tax return first time.
If your company owns or partly owns a UK residential property valued at more than £500,000 you need to submit an annual tax return for enveloped dwellings (ATED) on or after 1st April in each tax year.
ATED is an annual tax payable by companies that own or part own UK residential property valuated at more than £500,000. You need to complete an ATED tax return if your property is a dwelling, in the UK, is valued at more than £500,000 and if the property is owned or partly owned by a company, partnership or collective investment scheme.
For the purpose of ATED, a UK property where all, or part of the property is used, or could be used as a residence. E.g. house or flat including any gardens, grounds and buildings within them). The following kinds of property are NOT classed as a dwelling: hotel, guest house, board school accommodation, hospitals, student halls of residence, military accommodation, care homes, prisons. View https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance for further guidance on classification of a dwelling.
On or after 1st April each tax year.
Once you have your valuation, use this guide or contact HMRC to confirm what charging band your property falls into and see how much you need to pay. https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-pre-return-banding-checks#banding-check
Properties with multiple uses, for example residential and non-residential, a valuation is only required on the residential part
If there are multiple self-contained flats, each flat is a dwelling and will need to be valued separately.
Want to know more? We have seven more things you should know about ATED valuations here.
