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April 18, 2017
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ATED Deadline 30 April 2017

Annual Tax on Enveloped Dwellings (ATED) is an annual tax paid primarily by companies who own UK residential property valued over £500,000.

If ATED applies to a property owned by your company at 1 April 2017, then you will be required to submit an ATED return and pay any tax due by 30 April 2017.

Remember – if you own more than one property and are liable to tax, you will need to complete a separate ATED return for each property.

Do I need to file an ATED return?

An ATED return will be due if the property:

  • is a ‘dwelling’;
  • is valued over £500,000 as at 1 April 2012, or as at acquisition if later;
  • is in the UK; and
  • is owned completely or in part by a company, a partnership where a partner is a company, or a collective investment scheme.

What is a “dwelling”?

A property will be regarded as a dwelling if all or part of it may be used as a residence (e.g. house, flat). This includes any garden, grounds, and outbuildings within the property.

Where a property is of mixed use, it is only the residential portion that is subject to ATED and the residential part must be valued separately.

Chargeable amount for 1 April 2017 – 31 March 2018

ATED Relief

You may not be required to pay the ATED charge where you qualify for ATED Relief.

ATED Relief is available if the property is:

  1. let to a third party on a commercial basis and isn’t occupied (or available for occupation) by anyone connected with the owner
  2. open to the public for at least 28 days a year
  3. being developed for resale by a property developer
  4. owned by a property trader as the stock of the business for the sole purpose of resale
  5. repossessed by a financial institution as a result of its business lending money
  6. acquired under a regulated Home Reversion Plan
  7. being used by a trading business to provide living accommodation to certain qualifying employees
  8. a farmhouse occupied by a farm worker or a former long-serving farm worker
  9. owned by a registered provider of social housing

In order to claim the relief you must submit a Relief Declaration Return.

Penalties

Further information on ATED can be found here.

Contact us today to discuss your tax requirements.
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