ATED for companies owning residential property

ATED charge (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.

The amount payable will depend upon the value of the property. 

Reliefs

There are reliefs available, including qualifying property rental business relief.

Qualifying property rental business relief requires that the property is run on a commercial basis and with a view to a profit. However, the relief cannot be claimed if a non-qualifying individual is allowed to occupy the property. Non-qualifying individuals include individuals who have an interest in the property or are connected to someone who does.

Any reliefs from the ATED charge must be claimed in the annual return or in a relief declaration return.

HMRC

HMRC is writing to companies that may need to disclose ATED liabilities because they own UK residential property valued at over £500,000, and have not declared any profits in their tax returns, filed ATED returns claiming relief or have not filed ATED returns.

Failure to submit ATED returns and make payment to HMRC for the ATED charge, may result in late filing penalties being issued and late payment interest being applied to the unpaid ATED charge.

ATED returns

If ATED applies to your property, you will need to submit a return each year.

ATED returns must be submitted:

• By 30 April if your property is within the scope of ATED on 1 April.
• Within 30 days of acquisition if your property comes within the scope of ATED after 1 April.
• For a newly built property, within 90 days of the earliest of the date:
• your property becomes a dwelling for Council Tax purposes.
• it is first occupied.