Annual Tax on Enveloped Dwellings

This is a tax which applies when residential property is owned by a company. In every case where a property was worth at least GBP 500,000 on 1st April 2017 an ‘ATED’ tax return needs to be filed each year by 30th April.

The ATED year runs from 1st April – 31st March, and the tax return is submitted on 30th April for the current year.

There is no tax to pay when a property is rented out, available to rent out or is otherwise part of a property business. However, if it is used by you, your family or associates, is rented to someone who is connected to you or is simply vacant and not available to rent out, ATED is charged on such periods.

Where ATED is charged in the first three years of ownership, Stamp Duty on the purchase is due at 15% i.e. if you didn’t pay Stamp Duty Land Tax 15%, you will have to make up the difference.