The filing and payment deadline for the 2021/22 Annual Tax on Enveloped Dwellings (ATED) returns is 30th April 2021. Remember, an ATED return must still be submitted even if the ATED charge does not apply.
An ATED return is due where a non-natural person owns an interest in a UK residential dwelling valued at more than £500k. A non-natural person includes a company, a partnership where at least one of the partners is a company or a collective investment scheme (please note that does not apply to a partnership or LLP where the members are all individuals).
The more common reliefs from the ATED charge are for residential properties let to an unconnected third party and or property development companies. However, there are other reliefs which may apply.
The charge for 2021/22 (that is, the year 1 April 2021 to 31 March 2022) is based on the value of the property at 1 April 2017 or the value at the date it is acquired, if later. The property should be valued every five years for ATED purposes, meaning that the next valuation should be at 1 April 2022.
If an ATED charge is due, the rates for 2021/22 are as follows:
|
Property Value |
Annual Charge |
|
More than £500,000 up to £1 million |
£3,700 |
|
More than £1 million up to £2 million |
£7,500 |
|
More than £2 million up to £5 million |
£25,200 |
|
More than £5 million up to £10 million |
£58,850 |
|
More than £10 million up to £20 million |
£118,050 |
|
More than £20 million |
£237,400 |
Where a property is acquired part way through a chargeable period, an ATED return must be filed by the end of the period of 30 days beginning with the date of acquisition or transaction. For new builds, the deadline is 90 days from becoming a dwelling, for Council Tax purposes, or the date that it is first occupied, whichever is earlier.
An ATED return must be delivered to HM Revenue and Customs (HMRC) by the filing date in order to avoid late filing and late payment penalties. If the return (even to claim relief) is filed after the statutory deadline, a late filing penalty will automatically be issued.
If you think you could be affected by ATED or would like further information on the reliefs available, please do not hesitate to contact us at DRG Chartered Accountants to talk to our team of tax specialists.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.
