ATED Tax

Do you have a residential property worth more than £500,000 which is owned in the name of a company? Are you paying ATED tax?

The Annual Tax on Enveloped Dwellings (ATED) is a UK tax that applies to companies that own high-value residential property in the UK. The tax is due annually, and the amount payable depends on the value of the property. Further details can be found using this link – Annual Tax on Enveloped Dwellings – GOV.UK (www.gov.uk)

For the current year (1 April 2023 to 31 March 2024), the ATED rates are as follows:

Property valueAnnual charge
between £500,001 and £1 million£4,150
between £1,000,001 and £2 million£8,450
between £2,000,001 and £5 million£28,650
between £5,000,001 and £10 million£67,050
between £10 million and up to £20 million£134,550
over £20m:£269,450

It’s important to note that there are certain exemptions and reliefs available, so the amount payable may be reduced or eliminated in certain circumstances. If you’re unsure about whether the ATED applies to your company, or if you need help calculating or paying the tax, it’s best to consult with a tax professional.

Jas Virk, Real Estate Associate Partner at Lichfield based law firm, Keelys LLP, 01543 420000

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