Annual Tax on Enveloped Dwellings (ATED) return Deadline

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General business Posted on March 16, 2018

What is an Annual Tax on Enveloped Dwellings (ATED) return?

Corporate entities that own any residential property with a value over £500,000 (valued as at 1st April 2017), need to submit an annual return on HM Revenue & Customs known as an Annual Tax on Enveloped Dwellings (ATED) return. The return is prepared and filed on or after 1st April in advance of the next year. The deadline for filing your return is 30th April. If a corporate entity acquires a property valued over £500,000 during the year additional filing may be required.

For properties subject to an ATED charge, the following liability will become due:-

Chargeable amounts for 1 April 2018 to 31 March 2019

Property value

Annual charge

More than £500,000 up to £1 million

£3,600

More than £1 million up to £2 million

£7,250

More than £2 million up to £5 million

£24,250

More than £5 million up to £10 million

£56,550

More than £10 million up to £20 million

£113,400

More than £20 million

£226,950

There are several relief codes available to entities that may reduce the liabilities above down to nil in many cases. For example; properties held for property development or property held for letting on commercial terms, are generally exempted from the charge. However, a Relief Declaration Return still has to be filed annually to disclose this information.

HM Revenue & Customs will charge penalties for not filing the returns, not paying any liabilities due and filing inaccurate returns. It is imperative that if your corporate entity owns a property that falls within the scope of ATED that a filing is made.

Commercial properties held within an entity fall outside of the scope for ATED.

If you think you may fall under ATED or would like any further information please contact your local client manager, email info@clarkhowes.com or call +44(0)8442 492 209.

Written by Marie Rawlings