Search News


Lloyd and Co

Lloyd & Co
Chartered Accountants

103-105 Brighton Road
Surrey, CR5 2NG
020 8668 0500
This email address is being protected from spambots. You need JavaScript enabled to view it.

Source: HM Revenue & Customs | | 02/02/2023

The Annual Tax on Enveloped Dwellings (ATED) came into effect from 1 April 2013. The tax applies to certain Non-Natural Persons (NNPs) that own interests in dwellings valued at more than £500,000. These provisions affect most companies, partnerships with company members and collective investment schemes.

For the purposes of the ATED, it is immaterial whether the company, partnership or collective investment scheme is incorporated or resident in the United Kingdom. HMRC’s technical guidance on the subject states that, a company that is not incorporated or resident in the UK, but which owns land in the UK that constitutes a ‘single-dwelling interest’ is subject to ATED provisions and is required to make returns.

There is no ATED or ATED-related Capital Gains Tax payable if an individual owns a property directly, rather than through a company. There are also reliefs available, for example, if a property is in use for the purposes of a property rental business, run commercially, and with a view to profit (subject to certain exceptions) or held by a charity for its charitable purposes, subject to meeting various conditions.

From 1 April 2023, ATED is chargeable on property valued at:

  • More than £500,000 but not more than £1 million - £4,150
  • More than £1 million but not more than £2 million – £8,450
  • More than £2 million but not more than £5 million – £28,650
  • More than £5 million but not more than £10 million – £67,050
  • More than £10 million but not more than £20 million – £134,550
  • More than £20 million – £269,450

If the relevant property was within the scope of ATED on 1 April 2023, both the return and payment are due by 30 April 2023 for the ATED period 1 April 2023 to 31 March 2024.

There can be penalties for late filings, late payment or for an inaccurate return. Taxpayers can appeal a decision of HMRC, for example against a penalty or determination. Appellants have 30-days from the date of the decision to write and tell HMRC the grounds on which they are appealing.

Latest News

More time to top-up NICs
23/03/2023 - More...
In some circumstances it can be beneficial to make voluntary National Insurance Contributions (NICs) to increase your

Changes in VAT penalties
23/03/2023 - More...
The first monthly returns and payments affected by HMRC’s new VAT penalty regime were due by 7 March 2023. The new VAT

Scottish Parliament approves 3% rent cap
23/03/2023 - More...
The Scottish Parliament has approved a new 3% rent cap for most private renters that will come into effect from 1 April