ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
You’ll need to complete an ATED if your property:
is a dwelling -a property used as a residence for example a house or flat.
is in the UK
- was valued at more than:
- £2 million (for returns from 2013 to 2014 onwards)
- £1 million (for returns from 2015 to 2016 onwards)
- £500,000 (for returns from 2016 to 2017 onwards)
is owned completely or partly by a:
- company
- partnership where any of the partners is a company
- collective investment scheme — for example a unit trust or an open ended investment vehicle
Returns must be submitted on or after 1 April in any chargeable period.
Ther amount to be paid is based on a banding system, and from April 2025 the annual charge ranges from £4,450 at the bottom of the scale up to £292,350 at the top of the scale – (properties worth over £20 million)!
HMRC provide some guidance here
https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics
Please contact us if you think you may possibly be affected.