Overview of the ATED regime

Produced by Tolley in association with of Crane Dale Tax

Corporation Tax

Guidance

ATED ― background

The annual tax on enveloped dwellings (ATED) regime was introduced by FA 2013, Part 3 and was one element of a series of anti-avoidance measures that were designed to make it less attractive to hold high-value UK residential property through a corporate structure (or ‘envelope’).

The key aspects of ATED are:

•
the annual charge
•
entities ‘in charge’ but relievable and the nil return requirement to avoid penalties
•
ATED-related SDLT
•
ATED-related CGT for disposals prior to 6 April 2019

The ATED regime applies to high-value UK residential property owned on, or acquired after, 1 April 2013, by:

•
companies
•
partnerships with at least one company member, or
•
collective investment schemes (including unit trusts)

Together these are referred to in the remainder of this guidance note as ‘non-natural persons’ or ‘NNPs’. The ATED charge applies regardless of where the NNP is established or resident and therefore applies to both UK and non-UK NNPs.

Those within the ATED rules are

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Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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