The Annual Tax on Enveloped Dwellings is a curious sounding thing. ATED is an unusual sounding thing with dramatic consequences.
It is a domestic property tax that is levied on entities that own high value residential properties. Generally this means companies but it can sometimes mean partnerships with a corporate partner and other things. It does not affect individuals.
ATED requires the affected entities to value property on a five year cycle and pay a levy on those with an Open Market Value of £500,000 or more on 1st April 2022 or the date of purchase if later. You only look at individual property values and not the portfolio as a whole.
The charges are quite high and need to be notified and paid to avoid penalties and interest.
If a property is let commercially then there is no charge BUT a return still needs to be filed. And we know that HMRC likes to issue a penalty where it can so anybody with properties floating around the £500,000 value need to have this on their radar!