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The acronym stands for Annual Tax on Enveloped Dwellings. The tax was introduced in April 2013 to discourage ownership of property in an “envelope” that could avoid payment of Stamp Duty Land Tax on a subsequent sale.
ATED is a tax on companies and so-called Non-Natural Persons (NNPs) who have an interest in a residential property in the UK that was valued at £2m or more on 1 April 2012, or with a purchase price over £2m if acquired on or after 1 April 2012.
A Non-Natural Person is an owner who is not an individual and includes certain partnerships and collective investment schemes.
The ATED tax due for 2013-14 depends on the property value:
For the first year, 2013-14, the ATED return was due by 1 October 2013 and the tax is due to be paid by 31 October 2013. For subsequent years the ATED return and payment is due by 30 April in the year of assessment. Thus, for 2014-15 the return and payment will need to be made by 30 April 2014.
The tax is only due for the period of ownership in a tax year.
A dwelling might get relief from ATED if it is:
There are also a number of exemptions from the tax, most significantly, charitable companies using the dwelling for charitable purposes.
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