The Annual Tax on Enveloped Dwellings (ATED) return for 2021 to 31 March 2022, and any tax due for the year, is due by 30 April 2021.

What is the ATED?

The ATED is a system that came into force on 1 April 2013 regarding UK residential properties worth over £2 million and owned by either businesses or corporate partnership.

In 2015, the system extended to properties worth over £1 million and then in 2016 to properties worth more than £500,000.

How much is the return charge?

The ATED return is due by 30 April 2021, and the tax charge cost is based on the property’s value. The amount can range from £3,700 up to a maximum of £237,400 across six bands of value determined by reference to a property’s value – on 1 April 2017 or its original cost if acquired after this date.

Are there exemptions from the charge?

Property rental businesses, dealers and developers are exempt from the charge, which needs claiming through an annual “nil return”. If a company does not submit this claim in the correct amount of time, companies could receive penalties.

How do I file an ATED?

In 2017, HM Revenue and Customs introduced a new online ATED filing service, which became mandatory in April 2018. The online system involves a registration process, and an agent can file it for a company.

A revaluation exercise will be required soon when new ATED charges start, depending on how the coronavirus pandemic will affect the property values.

For more information on related issues, please contact us today.