Annual Tax on Enveloped Dwellings reminder

Where a single UK residential property valued at more than £500,000 is held by a company or other non-natural person, such as a trust or partnership with a corporate member, there is a potential charge - the Annual Tax on Enveloped Dwellings (ATED).

Property must be revalued every 5 years in line with ATED legislation. 

A return is due each year even if there is no tax to pay, and late filing penalties are charged if that ATED return is not submitted by the 30 April deadline. If the property is being developed or let to unconnected parties, relief from the tax charge is available. However, a return needs to be submitted to claim it.

Where a property is acquired during the year, an ATED return must be submitted within 30 days of acquisition, or for a newly built property within 90 days of the earliest of the date:

• the property becomes a dwelling for Council Tax purposes; or
• it is first occupied.

Speak with your usual contact at Peplows for more information.