NEWS

Annual Tax on Enveloped Dwellings

Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.

You’ll need to complete an ATED return if your property:

  • is a dwelling
  • is in the UK
  • was valued at more than:
    • £2 million (for returns from 2013 to 2014 onwards)
    • £1 million (for returns from 2015 to 2016 onwards)
    • £500,000 (for returns from 2016 to 2017 onwards)
  • is owned completely or partly by a:
    • company
    • partnership where any of the partners is a company
    • ­collective investment scheme - for example a unit trust or an open ended investment vehicle

Returns must be submitted on or after 1 April in any chargeable period.

There are reliefs and exemptions from the tax, which may mean you do not have to pay. If you have a claim to relief that reduces your ATED charge to nil, you can submit a Relief Declaration Return using the ATED online service.

If you own a property on 1 April 2019 that’s valued at more than £500,000, you must send an ATED return or relief declaration return by 30 April 2019.

If you haven’t already, you’ll need to register for ATED via the online service. We can prepare and file the ATED return on your behalf. If you have asked us to prepare and complete an ATED return previously we will submit the return on your behalf as in prior years.

Valuing your property

The valuation date you must use depends on when you owned the property. Generally the valuation date is either 1 April 2017 or the date you acquired the property if it’s after 1 April 2017.

If you need to pay

If you owe any payment for ATED, you must pay this by 30 April 2019.

If you’re sending an ATED return using the HMRC online service, it will automatically show the amount you need to pay. You will be issued with a payment reference number as soon as your return is sent, which you must use to make your payment.

To find out how much the annual charges are that you need to pay for the 2019/20 chargeable period, as well as payment account details go to www.gov.uk and search for ATED.

Other ways to send your return

If you’re unable to use the ATED online service to send us your ATED return, you will need to complete a paper return.

 

08/04/2019

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REF: MC/NL/1.1