The annual tax on enveloped dwellings (ATED) was introduced by the Finance Act 2013. It forms part of a package of measures designed to dissuade individuals from acquiring (and, therefore, holding) high-value residential property in the UK through, principally, companies (so-called enveloping). High value residential dwellings are dwellings valued at over £1 million. However, this threshold reduces to £500,000 from 1 April 2016. For a detailed discussion, see Practice note, Annual tax on enveloped dwellings (ATED) ( www.practicallaw.com/5-531-6879) .