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Annual tax on enveloped dwellings (ATED)

This applies where a residential dwelling in the UK is owned through:

  • a company,

  • a collective investment vehicle (such as a unit trust or an open ended investment company),

  • a partnership which includes one, or more, of the above.

The rates are:

Property value (£) Chargeable amount 1 April 2015-31 March 2016 (£)
1,000,000 to 2,000,000 7,000
2,000,001 to 5,000,000 23,350
5,0000,001 to £10,000,000 54,450
£10,000,001 to £20,000,000 109,050
Over £20,000,000 218,200

A dwelling may be part of mixed-use property and includes:

  • a property “capable of being a dwelling”,

  • the dwelling’s gardens and grounds and any building within them, unless that building is being used for a purpose covered by a relief.

A dwelling does not include:

  • a hotel or guest house,

  • a boarding school,

  • a hospital or care home,

  • a student hall of residence,

  • military accommodation,

  • a prison,

  • a  historic house that’s open to the public and run on a commercial basis,

  • a farmhouse , provided the farm is run on commercial basis and it is occupied by a “farm worker”.