Overview
ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
You’ll need to complete an ATED return if your property:
- is a dwelling — find out the meaning of ‘dwelling’ in the next section
- is in the UK
- was valued at more than:
- £2 million (for returns from 2013 to 2014 onwards)
- £1 million (for returns from 2015 to 2016 onwards)
- £500,000 (for returns from 2016 to 2017 onwards)
- is owned completely or partly by a:
- company
- partnership where any of the partners is a company
- collective investment scheme — for example a unit trust or an open ended investment vehicle
Returns must be submitted on or after 1 April in any chargeable period.
There are reliefs and exemptions from the tax, which may mean you do not have to pay.
Meaning of ‘dwelling’
Your property is a dwelling if all or part of it is used, or could be used, as a residence, for example a house or flat. It includes any gardens, grounds and buildings within them.
Find out about valuing different types of properties for example mixed use, more than one dwelling and multiple interests in properties.
Some properties are not classed as dwellings. These include:
- hotels
- guest houses
- boarding school accommodation
- hospitals
- student halls of residence
- military accommodation
- care homes
- prisons
Section 19 of the ATED technical guidance explains more about the meaning of ‘dwelling’.
Value your property
To work out what you need to pay you’ll need to value your property using a valuation date.
In some circumstances you can also ask HMRC for a Pre-Return Banding Check (PRBC).
For the 5 chargeable periods beginning from 1 April 2018, the 1 April 2012 valuation date was superseded by the 1 April 2017 valuation date. Properties owned on or before 1 April 2017 should be revalued using that date. If you acquired the property after 1 April 2017 the later date is to be used.
What you need to pay
The amount you’ll need to pay is worked out using a banding system based on the value of your property.
Chargeable amounts for 1 April 2022 to 31 March 2023
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £3,800 |
| More than £1 million up to £2 million | £7,700 |
| More than £2 million up to £5 million | £26,050 |
| More than £5 million up to £10 million | £60,900 |
| More than £10 million up to £20 million | £122,250 |
| More than £20 million | £244,750 |
Chargeable amounts for 1 April 2021 to 31 March 2022
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £3,700 |
| More than £1 million up to £2 million | £7,500 |
| More than £2 million up to £5 million | £25,300 |
| More than £5 million up to £10 million | £59,100 |
| More than £10 million up to £20 million | £118,600 |
| More than £20 million | £237,400 |
Chargeable amounts for 1 April 2020 to 31 March 2021
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £3,700 |
| More than £1 million up to £2 million | £7,500 |
| More than £2 million up to £5 million | £25,200 |
| More than £5 million up to £10 million | £58,850 |
| More than £10 million up to £20 million | £118,050 |
| More than £20 million | £236,250 |
Check chargeable amounts prior to 1 April 2020.
Section 6 and 7 of the ATED technical guidance tells you more about how to work out the charge if:
- you own the dwelling for part of a year
- you claim a relief for part of the year
You may also have to pay:
Submit your return and pay
You can use the ATED online service to submit your return and appoint an agent.
You’ll then need to pay anything you owe.
Other ways to submit your return
If you’re unable to use the ATED online service, further information can be found in the ATED returns notice.
Penalties and appeals
Penalties
You could be charged a penalty and interest if:
Appeals
If you disagree with an HMRC decision about your return, for example a penalty or determination, you may be able to challenge it by appealing.
You have 30 days from the date of the decision to write and tell HMRC the grounds on which you’re appealing.
Write to:
HM Revenue and Customs
ATED Penalty Appeals
Stamp Taxes
BX9 1HD
United Kingdom
Get help
If you need any help or further information you can call the ATED Helpline.
