The Annual Tax on Enveloped Dwellings 2017/18: action required!

The Annual Tax on Enveloped Dwellings (ATED) regime came into force on 1 April 2013 in respect of UK residential properties owned by companies or by corporate partnerships that were worth over £2 million. It was then extended to properties worth over £1 million from 2015 and to properties worth more than £500,000 from 2016.  A full briefing on ATED may be found here on our web pages.

The return for the year to 31 March 2018 and any tax due for the year must both be dealt with by 30 April 2017. The amount of the tax charge depends on the value of the property and now ranges from £3,500 up to a maximum of £220,350 across six bands of value determined by reference to a property’s value on 1 April 2012 or its actual cost if acquired after that date.

There are a number of exemptions from the charge covering property rental businesses, developers, and dealers which must be claimed via an annual “nil return”.  Failure to submit such a claim in good time will unfortunately expose the company to penalties.

HMRC is introducing a new online ATED filing service with effect from 1 April 2017 which will become compulsory for the filing of 2018/19 returns in April 2018. This involves a registration process, which we can assist with, and does allow for the appointment of an agent to file on behalf of a company.

Looking ahead, a revaluation exercise will also be required next year when the ATED charges will be rebased to 1 April 2017 values.

We understand that property values are particularly volatile post-Brexit (you knew it would get a mention somewhere) and that some valuers are advising that there may be instances where values might actually fall when this exercise is undertaken. It is suggested therefore that any valuation exercise is delayed until at least July when valuers can expect to have a more accurate picture of movements in the property market in the early part of 2017.

For assistance and guidance on ATED returns or planning, please get in touch with your usual BKL contact or use our enquiry form.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


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