ATED: Annual Tax On Enveloped Dwellings Deadline

Are you due to submit your Annual Tax on Enveloped Dwellings (ATED) return soon? ATED is a pre-emptive tax which means you may need to file a return even if you have no tax to pay. Returns are due by the 30th of April each year ...

If you own UK residential property valued above £500,000 on the 1st of April 2022 (or the date of acquisition if later) then ATED is payable for both UK and non-UK companies. This also applies if a property is owned by a partnership or a collective investment scheme such as a unit trust or investment company.

If your property is a dwelling and some or all of it could be used as a residence, then it falls under the Annual Tax on Enveloped Dwellings. Non-residential properties, hotels, B&Bs, boarding schools, hospitals, student halls of residence, military accommodation, care homes and prisons are not included under ATED.

The 2023/24 rates have been announced. The increase in the charge is linked to the consumer price index the rates for 2023/24 were announced in the Autumn 2022 Budget.

However, HMRC does levy penalties for non-compliance. Initially, this is £100 if you do not submit your ATED return in time, with £10 daily penalties when the return is more than 3 months overdue. If it gets to 6 months late, a further penalty is applied at £300, or 5% of HMRC's own estimate of your liability ... so it's a great idea to get your return in on time.

There are some reliefs available, but you still need to submit your return, then you claim the relief on the return:

- Property Rental businesses
- Properties opened to the public
- Property developers and traders
- Financial institutions acquiring properties in the course of lending
- The occupation of employees or partners
- Farmhouses
- Providers of social housing

Other exemptions are available for residential property owned by charities, which are held for charitable purposes. The same goes for properties held by public bodies, and those properties are conditionally exempt from Inheritance Tax.


If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.