Pay annual tax on enveloped dwellings
How to pay annual tax on enveloped dwellings (ATED) and related Capital Gains Tax, and how long it takes for your payment to reach HMRC.
You may need to pay annual tax on enveloped dwellings (ATED) if your company, partnership or collective investment scheme owns, either completely or partly, residential property worth more than £500,000.
You may need to pay ATED-related Capital Gains Tax if you sold a property before 6 April 2019. Find out more about Capital Gains Tax on high value residential property.
For disposals made from 6 April 2019, ATED-related Capital Gains Tax will no longer apply. You must still declare gains on your company’s Corporation Tax return. If you do not already submit a Corporation Tax return, you must register a non-resident company for Corporation Tax.
When to pay
ATED
You must submit your return and pay any tax due by the deadline.
The ATED payment date is the same as the filing date of your return, which is normally 30 April within the chargeable period.
Where the filing date falls after 30 April in the chargeable period the payment date is that later filing date.
ATED-related Capital Gains Tax
You must complete the ATED-related Capital Gains Tax return form and pay any tax by 31 January following the end of the tax year.
If the deadline is on a weekend or bank holiday, make sure your payment reaches HMRC by the end of the previous working day.
If you do not pay by the deadline, you may need to pay a penalty, interest or both.
What you need
You need your 14-character reference number starting with X.
You can find this on the letter or email HMRC sent to you after receiving your return or summary.
If you use an incorrect reference number, there will be a delay in the payment being allocated correctly.
Pay online
You can approve a payment through your online bank account.
Paying online through your bank account
You can pay by approving a payment through your online bank account by selecting the ‘pay by bank account’ option.
You will be directed to sign in to your online or mobile banking account to approve your payment.
You will need to have your online banking details to hand to pay this way.
The payment is usually instant but can take up to 2 hours to show in your bank account.
Pay by bank transfer
If you pay by CHAPS (Clearing House Automated Payment System) or Faster Payments, your payment will be received on the same or next working day.
If you pay by Bacs (Bankers Automated Clearing System), allow 3 working days for the payment to reach HMRC.
We recommend you check your bank’s processing times and maximum transaction limits before you pay.
Account details to use if your account is in the UK
Use the following details to make a payment if your account is in the UK:
- sort code — 08 32 10
- account number — 12001020
- account name — HMRC Shipley
Account details to use if your account is overseas
Use the following details to make a payment if your account is overseas:
- account number (IBAN) — GB03 BARC 2011 4783 9776 92
- Business Identifier Code (BIC) — BARCGB22
- account name — HMRC Shipley
You must make all payments in pound sterling. Your bank may charge you if you use any other currency.
If needed, you can provide your bank with the following HMRC banking address:
Barclays Bank plc
1 Churchill Place
London
United Kingdom
E14 5HP
Pay by cheque
Allow 3 working days for your payment to reach HMRC.
Make your cheque payable to ‘HM Revenue and Customs only’ and write your reference number on the back.
If you’re sending a cheque for more than one property, list each dwelling and note the payment reference against each amount.
Do not fold the cheque or attach it to other papers.
You can include a letter to ask for a receipt.
Send your cheque to:
HM Revenue and Customs
Direct
BX5 5BD
Updates to this page
Published 3 November 2014Last updated 31 October 2024 + show all updates
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A new section on 'When to pay' has been added to make clear when payments must be made by.
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Information has been added about how to approve a payment through your online bank account.
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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.
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Guidance on paying by cheque through the post has been updated.
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Updated information in the 'ATED-related Capital Gains Tax' section.
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Information added to explain the new rate band of £500,000.
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The Annual Tax on Enveloped Dwellings related Capital Gains Tax section has been amended for extra clarity.
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Overseas payment details updated.
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The pay by cheque through the post address has changed to HM Revenue and Customs, Direct, BX5 5BD.
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Updated to include 1 October 2015 deadline for properties in the new £1 million to £2 million band.
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First published.