The Annual Tax on Enveloped Dwellings (ATED) came into effect from 1 April 2013. The tax is payable by certain Non-Natural Persons (NNPs) that own interests in dwellings valued at more than £500,000. These provisions affect certain companies, partnerships with company members and managers of collective investment schemes described in the legislation as NNPs.
A recent HMRC report on ATED statistics for 2015-16 has shown a marked increase in revenues collected from the tax since it was introduced in 2013. Total revenues increased from £100million in 2013/14 to £178million in 2015/16. The introduction of lower bands since ATED was first introduced has played a large part in the increased tax take.
For the period 1 April 2017 to 31 March 2018 ATED will be chargeable as follows:
On property valued at:
- More than £500,000 but not more than £1 million – £3,500;
- More than £1 million but not more than £2 million – £7,050;
- More than £2 million but not more than £5 million – £23,550;
- More than £5 million but not more than £10 million – £54,950;
- More than £10 million but not more than £20 million – £110,100;
- More than £20 million – £220,350.
The new charges apply from 1 April 2017. For the ATED period 1 April 2017 to 31 March 2018, both the return and payment are due by 30 April 2017 if a property is within the scope of ATED.