Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable mainly by companies that own UK residential property valued at more than £1 million.

You’ll need to complete an ATED return if your property:

• is a dwelling
• is in the UK
• was valued at more than:
  • £2 million on 1 April 2012, or at acquisition if later, for returns from 2013 to 2014 onwards
  • £1 million on 1 April 2012, or at acquisition if later, for returns from 2015 to 2016 onwards
  • £500,000 on 1 April 2012, or at acquisition if later, for returns from 2016 to 2017 onwards
• is owned completely or partly by a:
  • company
  • partnership where one of the partners is a company
  • collective investment scheme – for example a unit trust or an open ended investment vehicle

ATED returns must only be submitted on or after 1 April in any chargeable period.

There are a number of exemptions from ATED:

• charitable companies using the dwelling for charitable purposes – make sure all of the exemption conditions are met in section 42 of the ATED: technical guidance
• public bodies – there are lists of exempt public bodies in section 43 of the ATED: technical guidance
• bodies established for national purposes – listed at section 44 of the ATED: technical guidance

If you meet the conditions for an exemption, you don’t need to file a return.