Annual Tax on Enveloped Dwellings (ATED)

Where a residential property (a dwelling) that is situated in the UK is held by a ‘non-natural person’ (NNP) an ATED charge applies, unless an exemption or relief is available and claimed.  

ATED will apply when, for example, a company owns a residential property in which the shareholder or a close relative resides.

An NNP is a company, partnership with a corporate member or a collective investment scheme. 
The residential property must be worth at least £500,000. However, it’s important to note that this is the value of the property and not the share owned by the NNP.