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ARTICLE · 03 NOVEMBER 2013

ATED: What Is It And How Does It Affect Charities

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This is a tax that was introduced with effect from April 2013 and applies to companies (and similar kinds of structures) which own dwellings with an individual value of £2 million upwards.

United KingdomTax
Graham Elliott
Graham Elliott
Jeremy Wakeham
Jeremy Wakeham
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What is ATED?

This is a tax that was introduced with effect from April 2013 and applies to companies (and similar kinds of structures) which own dwellings with an individual value of £2 million upwards. The purpose of the tax was to eliminate any tax advantage in holding residential property in corporate 'envelopes' as distinct from the more usual holding of it in the name of individuals. This is an annual tax, and runs alongside and in addition to the increased rate of SDLT on such 'enveloped' residential properties.

How does it affect charities?

There is a charitable exemption from the tax. This does not extend to wholly owned subsidiaries of charities, since the company in question has to be 'a charitable company'.

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