ATED - company with multiple properties

ATED threshold per company or per property

Didn't find your answer?

Is the £500k ATED threshold per company or per property? EG if a company owns 2 properties worth £300k each does ATED apply as the total of the properties is over £500k or ATED doesn't apply as neither of the properties exceed £500k?

I think it's per property but I'm not certain and I can't find a definite answer. 

Replies (6)

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By Wanderer
01st Dec 2022 10:00

Per property (technically I think it's per dwelling, but you can look that up).

Thanks (1)
By fawltybasil2575
01st Dec 2022 15:13

@ David Smith (OP).

You are UNDERSTANDABLY confused by the GOV.UK guidance (to which Jason has kindly provided a link; and which I surmise you have probably seen) the (frankly poor) wording being (immediately at the start of the "Overview") :-

“ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.

You’ll need to complete an ATED return if your property:”

Since “property” can be singular or plural, the wording of the first sentence could reasonably be interpreted as all (adopting the “plural definition”) property, ie “all properties”.

I would suggest that the GOV.UK guidance should be amended to (eg):-

“ATED is an annual tax payable by companies which own one or more individual UK residential properties where one (or more) of such properties is/are individually valued at more than £500,000.

You’ll need to complete an ATED return if one or more of the company’s properties:”


Thanks (3)
Replying to fawltybasil2575:
By David Smith
01st Dec 2022 17:08

You are spot on - that is exactly what was confusing me. Thank you.

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Replying to David Smith:
By Tax Dragon
01st Dec 2022 19:55

While I agree with you (and Basil) re the basic guidance, imho accountants should not be relying on basic guidance - certainly not for anything other than the most basic of situations (for which it appears to have been written), or for a link to more detailed/technical guidance. An apt example is the link to the ATED technical guidance from the basic guidance Jason pointed to.

Thanks (1)
By kaff
01st Dec 2022 19:24

And here’s the confirmation in the legislation, in case helpful.

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