Annual Tax on Enveloped Dwellings – ATED
Posted on 18th July 2021
ATED is an annual charge levied on UK dwellings which are owned by a non-natural person (a company).
Dwelling
A dwelling is a property that is:
Used all or in part as a residence or
Is in the process of being constructed or adapted as a residence
Properties that are not classified as dwellings per HMRC
Undeveloped land in certain circumstances.
Reliefs that can be claimed
Relief can be claimed for a property if it is:
let to a third party on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner
open to the public for at least 28 days a year
being developed for resale by a property developer
owned by a property trader as the stock of the business for the sole purpose of resale
repossessed by a financial institution as a result of its business of lending money
acquired under a regulated home reversion plan
being used by a trading business to provide living accommodation to certain qualifying employees
a farmhouse occupied by a farm worker or a former long-serving farm worker
owned by a registered provider of social housing or a qualifying housing co-operative
A return will still be due if a relief is available against the charge.
Exemptions
If you meet the conditions for an exemption, you do not need to file a return.
There are a number of exemptions from ATED:
charitable companies using the dwelling for charitable purposes – all of the exemption conditions must be met in section 42 of the ATED: technical guidance
public bodies listed in section 43 of the ATED: technical guidance
bodies established for national purposes listed in section 44 of the ATED: technical guidance
When is a return due?
By 30th April if your property is within the scope of ATED on 1st April
Within 30 days of acquisition if your property comes within the scope of ATED after 1st April
For a newly built property, within 90 days of the earliest of:
The date the property becomes a dwelling for council tax purposes
When it is first occupied
Questions or queries?
Please do let us know if you have any questions or if you need any further help understanding the rules. – please call us on 01932 564098 or message us here.
Information correct at time of publication
This article was produced in July 2021 – please always check with Fuller Spurling that information is current, up to date and applicable to your situation.
Tagged as: AETD, Residence and Domicile
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