Our specialist tax team will review your property portfolio with you and assist you in assessing what, if any ATED obligations or even tax payments apply.
20 March 2024
Guide to Annual Tax on Enveloped Dwellings (ATED)
High value residential property let by a company – does the ATED apply?
The Annual Tax on Enveloped Dwellings (ATED) is a tax on high-value residential properties that are held within ‘an envelope’, such as company or a partnership with at least one corporate partner. The charge does not apply to properties held by individuals.
The charge may potentially apply where a property in the UK which is valued at more than £500,000 is owned completely or partly by a company, a partnership with at least one corporate partner or a collective investment scheme (such as a unit trust or an open-ended investment company).
The charge is payable annually in advance. Where a property is within the scope of the
ATED on 1 April, an ATED return must be made online by 30 April and the tax for the period from 1 April to the following 31 March must be paid by the same date.
Our table below shows the rates of ATED that applies for the period from 1 April 2024 to 31 March 2025.
| Value of Property | ATED (2024/25) |
| More than £500,000 to up to £1 million | £4,400 |
| More than £1 million up to £2 million | £9,000 |
| More than £2 million up to £5 million | £30,550 |
| More than £5 million up to £10 million | £71,500 |
| More than £10 million up to £20 million | £143,550 |
| More than £20 million | £287,500 |
ATED Exemptions
Relief may be applicable to your qualifying properties given they fit certain criteria, including, but not limited to:
- A property rental business (not occupied by connected parties!)
- property developing,
- properties for employees,
- Farmhouses occupied by farm workers.
The relief must be claimed through HMRC’s ATED online service. If the claim reduces the ATED charge to nil (which will be the case if all high-value residential properties owned by the company are let on a commercial basis), a Relief Declaration Return needs to be completed.
