Annual Tax on Enveloped Dwellings (ATED)
The ATED came into effect from 1 April 2013. The tax is payable by certain Non-Natural Persons that own interests in dwellings valued at more than £2 million. This provision affects certain companies, partnerships with company members and managers of collective investment schemes described in the legislation as Non-Natural Persons (NNPs).
For the ATED period 1 April 2014 to 31 March 2015, both the return and payment are due by 30 April 2014. A copy of the ATED return is available online and HMRC has published a comprehensive notice containing information about ATED together with instructions as to how to complete the form.
ATED is chargeable for 2014-15 on property valued at:
- Less than £2m – Nil
- £2m to £5m – £15,400
- £5m to £10m – £35,900
- £10m to £20m – £71,850
- Over £20m – £143,750
Changes from 1 April 2015:
- From 1 April 2015 a new band will be introduced to include properties with a cost exceeding £1m but not more than £2m. The ATED in this band will be £7,000.
- From 1 April 2016 a further band will be introduced to include properties with a cost exceeding £500,000 but not more than £1m. The ATED in this band will be £3,500.