The Annual Tax on Enveloped Dwellings (ATED) return for the year from 1 April 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 charge that applies to UK residential properties worth more than £500,000 that are owned by companies, partnerships of which any of the members are companies, and collective investment schemes.

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 ranges 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, it could receive penalties.

How do I file an ATED?

HM Revenue & Customs (HMRC) requires ATED returns to be made online via a dedicated portal. 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 affects property values.

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


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