Annual Tax on Enveloped Dwellings
Find out about Annual Tax on Enveloped Dwellings (ATED), what you need to pay and how to appoint an agent or adviser to act on your behalf.
You must revalue your property every 5 years in line with ATED legislation. The 2023 to 2024 chargeable period is a revaluation year.
If you acquired a property:
- on or before 1 April 2022 — use 1 April 2022 as the revaluation date
- after 1 April 2022 — use the date you acquired it as the valuation date
Overview
ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
You’ll need to complete an ATED return if your property:
- is a dwelling — find out the meaning of ‘dwelling’ in the next section
- is in the UK
- was valued at more than:
- £2 million (for returns from 2013 to 2014 onwards)
- £1 million (for returns from 2015 to 2016 onwards)
- £500,000 (for returns from 2016 to 2017 onwards)
- is owned completely or partly by a:
- company
- partnership where any of the partners is a company
- collective investment scheme — for example a unit trust or an open ended investment vehicle
Returns must be submitted on or after 1 April in any chargeable period.
There are reliefs and exemptions from the tax, which may mean you do not have to pay.
Meaning of ‘dwelling’
Your property is a dwelling if all or part of it is used, or could be used, as a residence, for example a house or flat. It includes any gardens, grounds and buildings within them.
Find out about valuing different types of properties for example mixed use, more than one dwelling and multiple interests in properties.
Some properties are not classed as dwellings. These include:
- hotels
- guest houses
- boarding school accommodation
- hospitals
- student halls of residence
- military accommodation
- care homes
- prisons
Section 19 of the ATED technical guidance explains more about the meaning of ‘dwelling’.
Value your property
To work out what you need to pay you’ll need to value your property using a valuation date.
In some circumstances you can also ask HMRC for a Pre-Return Banding Check.
There are revaluation dates every 5 years from 1 April 2012.
| Revaluation date | Chargeable periods that apply (1 April to 31 March) |
|---|---|
| 1 April 2012 | 2013 to 2014 2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018 |
| 1 April 2017 | 2018 to 2019 2019 to 2020 2020 to 2021 2021 to 2022 2022 to 2023 |
| 1 April 2022 | 2023 to 2024 2024 to 2025 2025 to 2026 2026 to 2027 2027 to 2028 |
For the 5 chargeable periods from 2023, the revaluation date is 1 April 2022.
You must revalue the properties you owned on or before 1 April 2022 using that date. If you acquire property after 1 April 2022, use the acquisition date.
What you need to pay
The amount you’ll need to pay is worked out using a banding system based on the value of your property.
Chargeable amounts for 1 April 2024 to 31 March 2025
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £4,400 |
| More than £1 million up to £2 million | £9,000 |
| More than £2 million up to £5 million | £30,550 |
| More than £5 million up to £10 million | £71,500 |
| More than £10 million up to £20 million | £143,550 |
| More than £20 million | £287,500 |
Chargeable amounts for 1 April 2023 to 31 March 2024
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £4,150 |
| More than £1 million up to £2 million | £8,450 |
| More than £2 million up to £5 million | £28,650 |
| More than £5 million up to £10 million | £67,050 |
| More than £10 million up to £20 million | £134,550 |
| More than £20 million | £269,450 |
Chargeable amounts for 1 April 2022 to 31 March 2023
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £3,800 |
| More than £1 million up to £2 million | £7,700 |
| More than £2 million up to £5 million | £26,050 |
| More than £5 million up to £10 million | £60,900 |
| More than £10 million up to £20 million | £122,250 |
| More than £20 million | £244,750 |
Check chargeable amounts prior to 1 April 2022.
Section 6 and 7 of the ATED technical guidance tells you more about how to work out the charge if:
- you own the dwelling for part of a year
- you claim a relief for part of the year
You may also have to pay:
- Stamp Duty Land Tax when you buy your property — there’s a higher rate for corporate bodies
- ATED-related Capital Gains Tax or Corporation Tax if you sell your property
Submit your return and pay
You can use the ATED online service to submit your return and appoint an agent.
You’ll then need to pay anything you owe.
Other ways to submit your return
If you’re unable to use the ATED online service, further information can be found in Section 3 of the ATED returns notice.
Penalties and appeals
Penalties
You could be charged a penalty and interest if:
- you do not file your return on time
- you do not pay on time — find out more in CH155400 of the HMRC Compliance Handbook
- you submit an inaccurate return
Appeals
If you disagree with an HMRC decision about your return, for example a penalty or determination, you may be able to challenge it by appealing.
You have 30 days from the date of the decision to write and tell HMRC the grounds on which you’re appealing.
Write to:
HM Revenue and Customs
ATED Penalty Appeals
Stamp Taxes
BX9 1HD
United Kingdom
Get help
If you need any help or further information you can call the ATED Helpline.
Updates to this page
Last updated 22 November 2023 + show all updates
-
The chargeable amounts for 1 April 2024 to 31 March 2025 have been added.
-
Information has been added to tell you the date to use to value or revalue your property.
-
Information has been added about 1 April 2023 to 31 March 2024 being a revaluation year. Companies must revalue their properties.
-
The chargeable amounts for 1 April 2023 to 31 March 2024 have been added.
-
The chargeable amounts for 1 April 2022 to 31 March 2023 have been added.
-
Chargeable amounts for the period 1 April 2021 to 31 March 2022 have been updated.
-
The address for Penalties and appeals has been corrected.
-
The chargeable amounts for 1 April 2020 to 31 March 2021 have been added.
-
The guidance has been updated to reflect that ATED-related Capital Gains Tax will no longer apply from 6 April 2019, and any disposal made from this date will be liable to Corporation Tax.
-
Chargeable amounts for 1 April 2019 to 31 March 2020 have been added.
-
Guidance on if you do not pay penalties on time has been updated.
-
Chargeable amounts for 1 April 2018 to 31 March 2019 have been added to the page.
-
Section added on penalties and appeals.
-
Section added on how to submit your return and pay.
-
Section added on registering for the new ATED online service.
-
Chargeable amounts for 1 April 2017 to 31 March 2018 added to the page.
-
Added new ATED band (£500,000) for 2016 to 2017 in the 'overview section'.
-
Information added to explain the new rate band of £500,000 to £1 million, to be introduced from 1 April 2016
-
This guide has been reviewed and updated to reflect recent process changes and the introduction of the new Relief Declaration Return.
-
The postal address for appeals has been updated.
-
Information added about increased charges from 1 April 2015 and filing obligations.
-
First published.