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Tax Chat

Annual Tax on Enveloped Dwellings (ATED)

Annual Tax on Enveloped Dwellings (ATED)

You may not have heard of ATED, this is an annual charge introduced by HMRC in April 2013. It is levied on those who hold high value residential property in a limited company for personal use. E.g. second homes or holiday homes.

When the regime commenced, it only applied to properties valued at £2 million and above. However from 1 April 2016, this limit reduces to £500,000 potentially bringing many more properties into the regime. The minimum annual charge for properties valued at more than £500,000 but less than £1million is £3,500, this increases dependent on property value.

However remember that ATED does not apply to properties which are let out to unconnected third parties on an commercial basis, giving a valuable exclusion for many property investors. If applicable the company must make an ATED return and pay over the tax for 2016/17 by 30 April 2016.

For more information, please contact Lesley Sutton on 01484 550037 or email

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