How much is the ATED tax?

The Annual Tax on Enveloped Dwellings (#ATED) tax liability is worked out using a banding system based on the value of the property. The more expensive the property, the more you pay, and the annual charge does increase year on year; we’ve shared a table below of the taxes but read the next section first for the relief. 

 

Depending on your business activity, there are reliefs that you can claim that will reduce the chargeable amount to nil. The most common are: 

 

 

The property rental business relief specifically pertains to properties that are commercially let to tenants not connect with the owner. There are also exemptions that can be claimed by entities such as charitable companies. 

 

You will need to submit an ATED return for each property that ATED applies to except when you are claiming a relief or an exemption then in which case you can submit one ATED relief declaration return per relief type for multiple properties. 

 

If you company owns a dwelling, and cannot claim the reliefs available, then taxes due are shown in the table here – the overriding message is – don’t live in a property that is owned by your company 

The table below shows the taxes due for the 2023/24 tax year 

 

 

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 

 

Where there is a tax liability, payment must be made on the filing date. 

 

And as we’ve said on previous blogs/posts, if you’re a client of Property Tax Advice, we can have an overview conversation about this, or we can be instructed to handle this for you. Contact jenny@property-tax-advice.co.uk or your regular consultant accountant. 

 

#ATED #dwelling #HMO