Commentary

B6.701 ATED—overview

Business tax
Business tax | Commentary

B6.701 ATED—overview

Business tax | Commentary

Division B6.7     Annual tax on enveloped dwellings (ATED)

For updates affecting this Division please see Part B0 Updates

ATED—general

B6.701 ATED—overview

The annual tax on enveloped dwellings (ATED) was introduced with effect from 1 April 20131 and applies annually from that date, with each year referred to as a chargeable period. The rules impose an annual tax charge where:

  1.  

    •     a chargeable interest (referred to in the legislation as a 'single-dwelling interest' or 'SDI', see B6.720) in a UK residential dwelling (B6.725) is directly held by:

    1.  

      –     a company

    2.  

      –     partnership with at least one company member, or

    3.  

      –     collective investment scheme (including unit trusts)

  2.  

    •     and the taxable value (B6.709) of that SDI is more than £500,000 (£2m for the 2013/14 and 2014/15 chargeable periods; £1m for the 2015/16 chargeable

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