Official Statistics

Annual UK Annual Tax on Enveloped Dwellings statistics commentary

Updated 8 April 2022

About this release

This publication provides annual statistics on receipts and liable declarations for Annual Tax on Enveloped Dwellings (ATED). This includes the whole of the UK. Data is split by price band, region, local authority, and type of relief. For key definitions, guidance and references see the published tables (spreadsheet) that accompany this document.

What is annual tax on enveloped dwellings?

At Budget 2012 the Chancellor announced a set of measures to combat Stamp Duty Land Tax (SDLT) avoidance. These included ATED, a new annually recurring tax on UK residential dwellings which are held in a ‘corporate envelope’ (a company for example).

Key summary

In summary:

• ATED receipts in the 2020 to 2021 financial year were £111 million, which is 13% (£17 million) lower compared to the previous year, with decreases in all price bands except the £500,000 to £1 million range which remained the same as the previous year
  
  
• since the 2015 to 2016 financial year up to the 2020 to 2021 financial year there has been a continued year on year fall in ATED receipts
  
  
• the number of liable ATED declarations in the 2020 to 2021 financial year was 5,190, decreasing by 10% compared to the previous year, with decreases across all price bands
  
  
• about 85% of ATED receipts are from London, which is a decrease of 1% from what it was in the 2019 to 2020 financial year
  
  
• the London boroughs of Westminster, followed by Kensington and Chelsea, still dominate the receipts by location for ATED
  
  
• between the 2019 to 2020 financial year and the 2020 to 2021 financial year there has been a 4% (820) increase in the number of relief declarations being made
  
  
• all types of relief declarations have continued to rise, with the most notable rise being for Rental Relief, which accounts for 78% of all the relief claims made in the 2020 to 2021 financial year (the same percentage as in the 2019 to 2020 financial year)

Estimated ATED receipts by band

Figure 1 below shows the provisional figures of ATED receipts by the band the value of the corresponding property falls into. Liable declarations include those which were liable for only part of the year, for example, when a property is sold.

It should be noted that the declaration numbers relate to specific tax years, but receipts figures relate to the actual year the payment was received. Figure 1 shows that receipts have decreased for all valuation bands over £1m in the last year.

Figure 1: ATED receipts by band

Key points

In summary:

• ATED receipts in the 2020 to 2021 financial year were down by 13% (£17 million) compared to the previous year
  
  
• there was a fall in receipts for all price bands except the £500,000 to £1 million range, which remained stable
  
  
• the largest fall in receipts was in the ‘£2 million to £5 million’ and the ‘Over £20 million’ band, which both had falls of 16% (£5 million)

How does ATED apply

ATED is a tax charged on ‘non-natural persons’ holding an interest in one or more residential properties in the UK. An ATED Tax Return must be completed with respect to a property if all the following apply:

it’s a dwelling; it’s completely or partly owned by a non-natural person - that is, a company, a partnership where one of the partners is a company, or a ‘collective investment scheme’ (for example, a unit trust or an open-ended investment company); it’s situated in the UK; it was valued at more than:

• £2 million, or at acquisition if later, for returns from April 2013 onwards
  
  
• £1 million, or at acquisition if later, for returns from April 2015 onwards
  
  
• £500,000, or at acquisition if later for returns from April 2016 onwards
  
  

The annual ATED charge is based on the value at the valuation date or the price as at the date of acquisition if that was more recent. For the period up to the 2017 to 2018 financial year the valuation date was 1 April 2012. From the 2018 to 2019 financial year onwards the new valuation date was 1 April 2017.

Estimated ATED liable declarations by band

Figure 2 below shows the provisional number of ATED liable declarations by the band that the value of the corresponding property falls into. Liable declarations include those which were liable for only part of the year, which can occur, for example, when a property is sold. The number of liable returns has continued to fall across all bands during the last year.

Figure 2: ATED declarations by band

Key points

In summary:

• the number of ATED liable declarations decreased by 10% between the 2019 to 2020 financial year and the 2020 to 2021 financial year, from 5,760 to 5,190
  
  
• the decrease in liable declarations occurs in every band, with the steepest fall in declarations (14%) occuring in the ‘£2 million to £5 million’ band
  
  
• the profile of liable declarations across all price bands remained relatively consistent when compared to the previous year

ATED receipts by region

Figure 3 shows the regional breakdown of receipts by percentage for the eight financial years from the 2013 to 2014 financial year to the 2020 to 2021 financial year. The geographical breakdown of receipts in the 2020 to 2021 financial year closely mirrors the breakdown in previous years.

Figure 3: ATED receipts by region

Key points

In summary:

• receipts from ATED declarations for properties known to be in London accounted for 85% of all receipts in the 2020 to 2021 financial year, a similar figure to last year, by far the highest of all regions
  
  
• looking at those where region is identifiable (excluding cases with missing address information) 86% of the receipts were in London
  
  
• overall, the regional breakdown appears broadly stable when compared to previous years, with the South East at 10%, the East of England and the South West at 2%, and the combined remainder of the UK at 2%, with the percentages of non-missing receipts similar for non-London categories too
  
  
• missing regions account for about £2 million (2%) of receipts in the 2020 to 2021 financial year, which is the same as the figure reported in the 2019 to 2020 financial year
  
  
• missing regions occur generally because the address details reported are incomplete
  
  
• it is not possible to provide a breakdown of receipts for all regions in the UK as this would breach HM Revenue and Customs (HMRC) policy on disclosure and taxpayer confidentiality

ATED receipts by geographical area

Figure 4 shows the local authority geographical breakdown of receipts by percentage for the eight financial years from the 2013 to 2014 financial year to the 2020 to 2021 financial year. This shows that Westminster and Kensington and Chelsea continue to account for the vast majority of all ATED receipts.

Figure 4: ATED receipts by local authority

Key points

In summary:

• ATED receipts where a geographical area was known were highest within the London Borough of Westminster, accounting for 50% of ATED receipts in the 2020 to 2021 financial year; similar to the figure reported in the 2019 to 2020 financial year
  
  
  
• a further 24% of receipts came from declarations in the London Borough of Kensington and Chelsea; also similar to the figure reported in the 2019 to 2020 financial year
  
  
• the areas with the largest decreases in receipts were Westminster and Kensington and Chelsea with decreases of £8 million and £5 million respectively this year
  
  
• the top 10 local authorities were the same as they were in the 2019 to 2020 financial year
  
  
• it is not possible to provide a comprehensive breakdown of receipts for all Local Authorities, or smaller geographies in the UK as this would breach HMRC’s policy on disclosure and taxpayer confidentiality

ATED relief declarations by type

There are a number of reliefs available which may reduce a non-natural person’s ATED liability to nil. These are claimed by stating on the ATED return the relief that applies. Any changes to the relief status of a property must be stated on a new return.

It is not possible to provide a breakdown of receipts for all relief claims in the UK as this would breach HMRC’s policy on disclosure and taxpayer confidentiality.

Figure 5 shows the number of ATED relief declarations for the eight-year period from the 2013 to 2014 financial year to the 2020 to 2021 financial year. This shows a year-on-year increase in relief declarations for all types of reliefs. As in previous years Rental relief continues to dominate the type of reliefs being claimed.

Figure 5: ATED relief declarations by type

Key points

In summary:

• there was a total of 21,730 relief declarations in the 2020 to 2021 financial year, an increase of 820 (4%) from the 2019 to 2020 financial year (Year on year comparisons on reliefs should be treated with caution, especially in relation to changes in the population that fall within the scope of ATED)
  
  
• about 78% of all relief claims in the 2020 to 2021 financial year related to the rental relief (17,010 claims)
  
  
• the next highest share of relief claims was the property development relief accounting for 13% of claims (2,870 claims)
  
  
• the percentage shares for other types of relief claimed in the 2020 to 2021 financial year were similar to those reported for the 2019 to 2020 financial year, accounting for about 9% of claims (1,860) in total
  
  
• a full list of relief categories can be found in the supporting tables for this publication

Contact information

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Please see the stamp duties statistics collection for all related statistics.