Your Company’s Guide to Nailing ATED: Don’t Get Burned!
If your business owns a UK home worth more than £500,000, you might be hit with a tax you didn’t see coming: the Annual Tax on Enveloped Dwellings (ATED). Since 2013, this tax has been the government’s way of making sure companies with fancy homes pay up, stopping people from dodging personal taxes by owning property through a business. Let’s break it down in plain English so you can stay on top of things.
What’s ATED?
ATED is a tax for companies that own UK homes worth £500,000 or more. We’re talking about places someone could live in—like a house, flat, or even a home with a nice garden or extra buildings. Things like hotels, nursing homes, or student housing don’t count.
Example: Your company buys a flat in London for £850k to rent out? That’s ATED territory.
Do You Have to Deal with It?
You need to file an ATED return if:
- Your company owns a UK home worth £500,000 or more.
- It’s a place someone could live in (including gardens or sheds).
- It’s not something like a hotel or guesthouse.
If this sounds like you, keep reading!
How Much Is the Tax?
The tax depends on your home’s value as of April 1, 2022, and that number sticks until the 2027/28 tax year. If you bought the place later, use the price you paid. The ATED year runs from April 1 to March 31.
Here’s what you’ll owe for 2025/26:
| Home Value | Yearly Tax |
| £500,000 – £1 million | £4,450 |
| £1 million – £2 million | £9,150 |
| £2 million – £5 million | £31,050 |
| £5 million – £10 million | £72,700 |
| £10 million – £20 million | £145,950 |
| Over £20 million | £292,350 |
Example: Grab a £1.5m home in 2025? You’re looking at a £9,150 tax bill each year.
Deadlines You Can’t Ignore
Timing matters with ATED:
- Homes already in ATED: File by April 30 every year.
- New buys: You’ve got 30 days to file.
- New builds or conversions: You get 90 days.
Miss these, and you’ll get hit with fines starting at £100, and they grow fast if you keep putting it off.
Ways to Skip the Tax
Good news: lots of companies don’t end up paying ATED because of exemptions. You might owe nothing if your home is:
- Rented out to someone not connected to your company.
- Open to visitors at least 28 days a year (like a historic house).
- Part of a business that builds or flips properties.
- Used for your employees to live in.
- A working farmhouse or certain community housing.
Important: Even if you don’t owe tax, you still have to file a Relief Declaration Return to claim the exemption. No skipping this step!
Why It Matters
ATED isn’t just another piece of paperwork. Ignoring it can lead to big fines and major headaches. If your company owns a home worth over £500,000, getting this right keeps you out of trouble and saves you from surprise costs.
Let Super Financial Sort It Out
Don’t let ATED stress you out. At Super Financial, we make it easy by:
- Checking if ATED applies to your home.
- Figuring out the right tax amount.
- Grabbing any exemptions you can use.
- Filing on time to avoid fines.
Get in Touch
- Visit: superfinancial.co.uk
- Call: +44 (0)2089250070
- Email: info@superfinancial.co.uk
Let us handle the boring stuff so you can focus on running your business without worry.
