Annual Tax on Enveloped Dwellings (ATED) filing deadlines for the 2024/25 Tax Year

As the deadline for filing Annual Tax on Enveloped Dwellings (ATED) returns draws near, it's imperative for property owners and corporate entities to grasp the intricacies of their obligations and ensure full compliance with HM Revenue & Customs (HMRC) regulations. Here's an overview of everything you need to know about ATED for the upcoming tax year.

Who Needs to Pay ATED?

ATED is obligatory for organizations possessing UK residential property valued at over £500,000 as of April 1, 2022. Properties meeting the following criteria fall under the ATED scope:

  • Classified as a dwelling, whether wholly or partially used as a residence.
  • Located in the UK.
  • Valued at over £500,000.
  • Owned by a Non-Natural Person, usually a company.

Entities meeting these criteria must submit an ATED return by April 30 each year, with the tax charge payable annually in advance.

Exemptions and Reliefs:

Although ATED applies primarily to residential properties, exemptions and reliefs are available for certain types of property usage. These include properties let out on commercial terms or utilised in property development trade, among other exemptions. A full list of ATED exemptions can be found here: Annual Tax on Enveloped Dwellings: reliefs and exemptions - GOV.UK (

Even if an exemption applies, companies must prepare and submit a nil ATED return to HMRC.

How is ATED Calculated?

The ATED tax charge is contingent upon the value of the property. Starting from 1 April 2024, properties valued between £500,000 and £1 million incur a tax charge of £4,400. The charge escalates for properties exceeding £20 million, reaching £287,500. A full table with the chargeable amounts can be seen here:

 Property value

Annual charge

More than £500,000 up to £1 million


More than £1 million up to £2 million


More than £2 million up to £5 million


More than £5 million up to £10 million


More than £10 million up to £20 million


More than £20 million


ATED Penalties:

Failure to adhere to ATED obligations may lead to penalties from HMRC, including failure to file the ATED return before the deadline, failure to pay taxes owed promptly, and submitting an inaccurate ATED return. Organizations have the right to appeal HMRC's penalty decision by writing to HMRC within 30 days of the decision date.

Additional Assistance:

For further information or assistance with ATED obligations and compliance, please contact Alan Rajah at Lawrence Grant. Our experienced team is here to provide expert guidance and support tailored to your specific needs. With the ATED return deadline looming, it's imperative to take proactive measures to evaluate tax liabilities, claim eligible reliefs, and submit accurate returns on time.

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