ATED Returns

Annual Tax on Enveloped Dwellings (ATED) is an annual obligation and fee imposed on companies and certain entities that possess residential properties. This requirement arises at the time of acquiring a property valued over £500,000, and it must be fulfilled annually thereafter. Properties valued below £500,000 are exempt from this obligation. Each property is evaluated on an individual basis. A return for ATED must be submitted to HMRC within 30 days following the purchase of a property. Subsequently, an annual return is required by April 30th, detailing each property owned by the business as of April 1st.

The ATED charge is determined by the value of each property, with the charge increasing in accordance with the property's value. There are several reliefs available under ATED, with the most frequently utilised being those applicable to leasing property to third parties on commercial basis and businesses engaged in the development of houses for sale.

It is crucial for every business that owns such properties to file an ATED return, even in cases where no charge is applicable. Failure to submit an ATED return can result in significant penalties imposed by HMRC. Please contact us if you need assistance and guidance in meeting the ATED compliance requirements.