ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
Who needs to complete an ATED return?
Owners may need to complete an ATED return if their property:
- is a dwelling
- 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
A property is a dwelling for this purpose 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.
Property excepted for ATED
There are exceptions for:
- hotels
- guest houses
- boarding school accommodation
- hospitals
- student halls of residence
- military accommodation
- care homes
- prisons
When are ATED returns due?
Returns must be submitted on or after 1 April in any chargeable period and are due by 30 April. This is a tight timeframe in which to make the submission and settle any liability, or indeed claim relief. ATED returns and relief claims for the year to 31 March 2026 must be filed by 30 April 2025.
Historically the valuation date for properties owned prior to 1 April 2012 was 2012, however there are fixed revaluation dates every five years and the second of those reviews was 1 April 2022.
For acquisitions since 1 April 2022 the market value on acquisition is used for ATED.
Acquisitions since 1 April 2022
If the company acquired relevant residential property valued at £500,000 or more after 1 April 2022 it should register for ATED within 30 days or 90 days from the completion of a new build property.
Penalties are charged for late Returns or submissions and our experience is that HMRC will pursue these vigorously.
Next steps
If you think you may be affected by the above then please do not hesitate to contact us.
