Annual Tax on Enveloped Dwellings Regime

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The Annual Tax on Enveloped Dwellings (ATED) regime applies to UK residential properties worth more than £500,000 held by non-natural persons (including companies).

ATED can give rise to additional stamp duty land tax on purchase and capital gains tax costs on disposal.  It also includes an annual charge based on the value of the property.

ATED returns for the year to 31 March 2020 are due for submission by 30 April 2019.

There was a revaluation at 1 April 2017 for ATED purposes, previously the valuation date was 1 April 2012.  The 2019-20 ATED position is based on the 1 April 2017 value.

Any ATED payment is due by 30 April 2019.

The 2019-20 ATED annual charges have increased and are now:

Property Value Annual chargeable amounts for the 2019 to 2020 chargeable period

£500,001 to £1,000,000              £3,650

£1,000,001 to £2,000,000          £7,400

£2,000,001 to £5,000,000         £24,800

£5,000,001 to £10,000,000       £57,900

£10,000,001 to £20,000,000    £116,100

£20,000,001 and over                 £232,350

ATED relief is available for bona fide property investment or development businesses but must be claimed annually.

For more information please contact Pam.Harvey@crowe.im


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