Annual Tax on Enveloped Dwellings Overview
Most residential properties (dwellings) are owned directly by individuals. But in some cases a dwelling may be owned by a company (or other collective investment vehicle). In these circumstances the dwelling is said to be 'enveloped' because the ownership sits within a corporate 'wrapper' or 'envelope'. The Annual Tax on Enveloped Dwellings (ATED) is a tax charged on ‘non-natural persons’ (a company, a partnership with a company member, or a collective investment scheme) which hold an interest in one or more UK residential dwelling(s) known as (a ‘single-dwelling interest’) and where that single dwelling interest is worth more than £1/2 million. It will not apply where an individual alone, or with other individuals, owns a residential property. ATED is an annual tax and is charged in respect of ‘chargeable periods’ running from 1 April to 31 March.
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