Guidance

Pay annual tax on enveloped dwellings

How to pay your annual tax on enveloped dwellings (ATED) and related Capital Gains Tax.

You may need to pay annual tax on enveloped dwellings if your company, partnership or collective investment scheme owns, either completely or partly, residential property worth more than £500,000.

You may need to pay Capital Gains Tax related to annual tax on enveloped dwellings if you sold a property before 6 April 2019. Find out more about Capital Gains Tax on high value residential property.

For disposals made from 6 April 2019, the related Capital Gains Tax will no longer apply. You must still declare gains on your company’s Corporation Tax return. If you do not already submit a Corporation Tax return, you must register a non-resident company for Corporation Tax.

What you need

You will need the reference given on the letter or email HMRC sent you 10 to 15 days after receiving your return or summary.

The reference is made up of 14 characters and starts with an ‘X’. For example, ‘XA123456789012’.

How much time to allow

If you do not pay by the deadline, you may need to pay a penalty and interest.

If the deadline falls on a weekend or bank holiday, you must make sure your payment reaches us on the last working day before (unless you pay by Faster Payments).

Payment method Time allowance
Approve a payment through your online bank account Same or next day
Online or telephone banking (Faster Payments) Same or next day
CHAPS Same or next day
Bacs 3 working days
By cheque through the post 3 working days

Approve a payment through your online bank account

You can pay by approving a payment through your online bank account by selecting the ‘pay by bank account’ option.

You will be directed to sign in to your online or mobile banking account to approve your payment.

You need your online banking details, such as your sort code and account number, to pay this way.

The payment is usually instant but sometimes it takes up to 2 hours to show in your account.

Pay now

HMRC’s account details for bank transfers

Use these details to pay into a HMRC account by CHAPS, Bacs or Faster Payments.

We recommend you check the maximum transaction limit set by your bank.

Account details to use if your account is in the UK

Sort code Account number Account name
08 32 10 12001020 HMRC Shipley

Account details to use if your account is overseas

You must make all payments in sterling (GBP).

Account number (IBAN) Bank identifier code (BIC) Account name
GB03 BARC 2011 4783 9776 92 BARCGB22 HMRC Shipley

If you need to provide your bank with HMRC’s banking address it is:

Barclays Bank Plc
1 Churchill Place
London
United Kingdom
E14 5HP

Paying by cheque

Make your cheque payable to ‘HM Revenue and Customs only’ and write your reference on the back of the cheque.

If you’re sending a cheque for more than one property, list each dwelling and note the payment reference against each amount.

Do not fold the cheque or fasten it to other papers.

You should allow 3 working days for your payment to reach us. This will take longer if posting from overseas.

HM Revenue and Customs
Direct
BX5 5BD

You do not need to include a street name, city name or PO box with this address.

If you’re paying by post, you can include a letter with your payment to ask for a receipt.

Published 3 November 2014
Last updated 24 August 2022 + show all updates
  1. Information has been added about how to approve a payment through your online bank account.

  2. The guidance has been updated to reflect that ATED-related Capital Gains Tax will no longer apply from 6 April 2019, and any disposal made from this date will be liable to Corporation Tax.

  3. Guidance on paying by cheque through the post has been updated.

  4. Updated information in the 'ATED-related Capital Gains Tax' section.

  5. Information added to explain the new rate band of £500,000.

  6. The Annual Tax on Enveloped Dwellings related Capital Gains Tax section has been amended for extra clarity.

  7. Overseas payment details updated.

  8. The pay by cheque through the post address has changed to HM Revenue and Customs, Direct, BX5 5BD.

  9. Updated to include 1 October 2015 deadline for properties in the new £1 million to £2 million band.

  10. First published.