ated

ATED stands for the Annual Tax on Enveloped Dwellings. It is a UK property tax introduced by the Finance Act 2012 and administered by HM Revenue & Customs. The tax targets high‑value residential properties that are owned by companies or other non‑natural persons (NNPs) and are used, or intended to be used, as dwellings. The charge is annual and applies whether the property is rented, vacant, or owner‑occupied, subject to certain reliefs.

Scope and mechanics: ATED applies to dwellings held within an enveloped structure, typically a company or other corporate body, or certain partnerships and collective investment schemes, where the property is used or intended to be used as a residence. The charge can apply to properties located in the United Kingdom and is assessed based on the property’s value as of a valuation date; rates are set by value bands and can differ depending on use and occupancy arrangements. Reliefs and exemptions may apply in specific circumstances, such as properties under development or certain uses by connected individuals or tenants.

Valuation, rates, and reliefs: The amount of ATED is determined by the dwelling’s market value and the applicable band for the charge year. In addition to the base charge, there may be extra charges if the property is let or otherwise used in particular ways. Various reliefs exist, including relief for properties not currently used as dwellings in certain conditions or for properties occupied by individuals connected to the owner, though reliefs are subject to eligibility criteria and administrative procedures.

Administration: Owners must determine ATED applicability and file an ATED Return with HMRC, usually with annual payments due by a specified deadline. Penalties apply for late filing or payment. ATED is one tool in the UK’s approach to taxing high‑value residential property held through corporate structures and has been a subject of policy debate regarding transparency and housing supply.