When it comes to property taxes, staying ahead of the game is key. With the 30th April 2025 ATED filing deadline fast approaching, now’s the perfect time to refresh your knowledge and make sure you’re fully compliant.
What is ATED?
The Annual Tax on Enveloped Dwellings (ATED) was introduced in 2013 to ensure that companies and other non-individual entities owning high-value residential properties contribute fairly to the public purse. As the property market and tax policies evolve, so too does ATED, making it crucial to stay up to date with the latest requirements.
Who Needs to Pay ATED?
If your company or any other non-individual entity owns a UK residential property valued at over £500,000, ATED is something you need to be aware of. The tax applies to properties held within corporate structures rather than those owned by individuals.
ATED Tax Bands for 2024/25
The amount payable depends on your property’s value. Here’s a breakdown of the current thresholds:
| Property Value | Annual Charge |
|---|---|
| £500,000 – £1 million | £4,400 |
| £1 million – £2 million | £9,000 |
| £2 million – £5 million | £30,550 |
| £5 million – £10 million | £71,500 |
| £10 million – £20 million | £143,550 |
| Over £20 million | £287,500 |
Are There Any Exemptions or Reliefs?
Not every property held within a corporate structure is subject to ATED. You may be eligible for an exemption or relief if your property:
- Is used solely for legitimate business trading purposes
- Is owned by a registered charity
- Qualifies under certain HMRC exemptions, such as joint ventures or transitional arrangements
A quick chat with your accountant can clarify whether you qualify for any of these reliefs, potentially saving you thousands.
Key Deadlines & Compliance
To avoid penalties, make sure you meet the following deadlines:
- 30th April 2025 – The ATED return must be submitted for the 2024/25 tax year
- 30th April 2025 – Any tax due must also be paid
- Ongoing Compliance – Keep an eye on new HMRC guidelines to ensure you remain on track
Final Thoughts on ATED
ATED is a crucial tax consideration for companies holding high-value residential properties. With charges reflecting current market values, it’s more important than ever to stay informed and ensure compliance. Regular reviews with your accountant can help you navigate complexities, claim available reliefs, and avoid unnecessary costs.
Got questions about ATED or need expert advice? At Nordens, we offer assistance with all of your business needs: from your everyday accounting to Advisory, Tax, Audit and more. If you need support with any of the above or just want to speak to a member of the team, get in touch today.
