Annual Tax on Enveloped Dwellings

28 April 2022 / Insight posted in Technical guidance

If you own a UK residential property through a “non-natural person”, you may fall within the Annual Tax on Enveloped Dwellings (ATED) regime, even if you are a non UK resident.

The ATED legislation requires any company holding UK residential property valued above £500,000 to submit an annual ATED return and to pay an ATED tax charge. Exemptions may apply.


1 April 2022 is a revaluation date for the purpose of the ATED legislation. Going forward, the 1 April 2022 valuation must be used to assess the application of the £500,000 threshold and included in the April 2023 ATED returns.


ATED returns must be submitted and the tax paid by 30 April of each chargeable period. Late filing will incur an initial £100 penalty with further significant penalties after three and six months.

While reliefs and exemptions from the tax are available it is still necessary to file a return by the due date.

Find out more in our ‘Annual Tax on Enveloped Dwellings’ guide, or contact us directly.