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Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable by ‘non-natural persons’ that own UK residential property valued at more than £500,000.

ATED Charges for 2019/20

The ATED charges for the period 1 April 2019 to 31 March 2020 are based on the property value as at 1 April 2017 or the value at the date of acquisition if later, and have increased to:

Property Value 2019/20 Charge
More than £500K up to £1m £3,650
More than £1m up to £2m £7,400
More than £2m up to £5m £24,800
More than £5m up to £10m £57,900
More than £10m up to £20m £116,100
More than £20m £232,350

2019/20 ATED Returns and Payments Deadlines for Residential Properties Owned on 1 April 2019

The filing deadline for 2019/20 ATED returns and payment of any tax due is 30 April 2019.

ATED Reliefs for Residential Properties Owned on 1 April 2019

The ownership of some properties by non-natural persons will qualify for relief from the ATED charge (either in part or in full). Relief may be claimed for:

  • Property rented to unconnected third parties as a genuine property rental business.
  • Property development businesses.
  • Properties run as a commercial trade and open to the public for at least 28 days per year.

This list is not an exhaustive list. If you want to know more about whether an ATED relief can be claimed, please contact us.

ATED relief must be claimed every year in an online ATED Relief Declaration Return (RDR) which is also due for submission by 30 April 2019.

Please contact us for the appropriate return and payment deadlines if a residential property is purchased during the 2019/20 period.

Non-Natural Person

A non-natural person is generally one that is a corporate entity that owns the property beneficially. Nominee ownership by a company for an individual or a trust is not chargeable to ATED. The definition of non-natural person is however a complex one and if you or your clients are in any doubt as to whether the property ownership falls within the non-natural person definition, please get in touch with your usual SMP adviser for clarification.

SMP Accounting & Tax Services

SMP can provide the full range of services with regard to any property which will be affected by the ATED and Capital Gains Tax (CGT) charges. Our services include:

  • Preparation and filing of ATED returns
  • Preparation and filing of non-resident CGT returns
  • Advising on ATED reliefs
  • Advising on initial structuring of property purchases
  • Advising on restructuring of property ownership
  • Arranging for property valuations
  • Corporation Tax on property disposals

Why SMP?

Whether you’re purchasing, selling, letting, or looking for the best way to hold your UK property, both now and for future generations, the SMP Partners group of companies can provide bespoke tax, structuring, and compliance services tailored to your needs.

SMP Accounting & Tax specialises in providing bespoke property structuring advice and compliance services for High Net Worth Individuals and their advisers. SMP’s tax specialists have a wealth of experience advising UK residents (both UK and non-UK domiciled) and international clients on their property and personal tax matters.

SMP Trustees and SMP Partners provide specialist trust and company services for property structures and have extensive experience looking after family property, residential and commercial property portfolios, and buy-to-let property.

Please do not hesitate to contact your usual SMP adviser or one of the tax advisers listed below to discuss how we can assist:

Tony Dowling 
Tel: +44 (0) 1624 683 254 
Email: tony.dowling@smppartners.com 

Rachael Hooper
Tel: +44 (0) 1624 682 267
Email: rachael.hooper@smppartners.com

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