4th April 2018

ATED Thresholds increase for 2018/19

The annual tax on enveloped dwellings (ATED) is a tax charged on companies holding residential property.

ATED will increase in line with inflation from 1 April 2018.

At the lowest rate, property worth between £500,000 and £1 million will see the charge rise to £3,600, with the top band charge increasing to £226,950 for property worth more than £20 million.

The ATED charge doesn’t apply to property if it is eligible for relief.

You may be able to claim relief for your property if it is:

– let to a third party and isn’t, at any time, occupied by anyone connected with the owner
– open to the public for at least 28 days a year
– developed for resale by a property developer
– owned by a property trader as the stock of the business for the sole purpose of resale
– repossessed by a financial institution as a result of its business of lending money
– acquired under a regulated Home Reversion Plan
– used by a trading business to provide living accommodation to certain qualifying employees
– a farmhouse occupied by a farm worker or a former long-serving farm worker
– owned by a registered provider of social housing

The following are exempt from ATED:
– charitable companies using the dwelling for charitable purposes
– public bodies
– bodies established for national purposes

Credit: Business Insider: Tips & Advice and HMRC Gov website