Annual Tax on Enveloped Dwellings (ATED)
The ATED came into effect on 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 were due by 30 April 2014. A copy of the ATED return is available online.
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.
HMRC has recently issued a consultation that puts forward two proposals to amend the current filing requirements and reduce the number of returns genuine businesses have to submit in order to claim a relief. The consultation is open until 16 September 2014.