The concept of “Is Ated Per Property” can seem daunting at first glance, especially for those unfamiliar with UK tax regulations. Simply put, it refers to whether the Annual Tax on Enveloped Dwellings (ATED) applies to a specific property. This article aims to demystify ATED and clarify when it is indeed levied per property.
Understanding the Fundamentals of ATED
Annual Tax on Enveloped Dwellings, or ATED, is a tax payable mainly by companies that own UK residential property valued at more than £500,000. The purpose of ATED is to discourage the use of corporate structures to avoid paying stamp duty land tax (SDLT) and capital gains tax (CGT) on high-value residential properties. Understanding whether ATED applies per property is crucial for compliance and avoiding penalties. The tax is charged annually, with rates varying depending on the property’s value band. For example:
- Properties valued between £500,000 and £1 million have a lower ATED charge.
- Properties valued over £20 million attract the highest ATED charge.
ATED is indeed applied *per property*. This means if a company owns multiple residential properties within the UK that meet the valuation threshold, ATED is payable on each of those properties individually. The valuation is usually based on the open market value of the property on a specific date, and revaluations may be required periodically. Some exemptions and reliefs may apply; it’s crucial to ascertain eligibility through official channels.
Certain properties and specific uses may qualify for reliefs, meaning ATED may not be payable even if the ownership structure and valuation meet the initial criteria. Common reliefs include properties let commercially, used in a property development business, or held for charitable purposes. To summarize the key aspects:
- ATED is an annual tax.
- It applies to properties owned by companies (or certain other enveloped structures).
- It is levied *per property* exceeding the current valuation threshold.
Here is the basic information on the property value and the annual ATED charge:
| Property Value | Annual ATED Charge (Example) |
|---|---|
| £500,000 - £1 million | £4,150 |
| £1 million - £2 million | £8,450 |
For detailed information on ATED, including current valuation thresholds, annual charge rates, and available reliefs, it’s best to consult the official guidance provided by HM Revenue & Customs (HMRC). This will ensure you have the most up-to-date and accurate information when determining whether ATED is payable per property.