What is ATED?
The
Annual Tax on Enveloped Dwellings (ATED) is payable by certain Non-Natural Persons (NNPs) that own interests in dwellings valued at more than £500,000. These provisions affect certain companies, partnerships with company members and managers of collective investment schemes described in the legislation as NNPs.
When is ATED due?
There is no
ATED or ATED-related
Capital Gains Tax payable if an individual owns a property directly, rather than through an entity. There are also reliefs if a property is used for commercial purposes.
From 1 April 2024, ATED is
chargeable on property valued at:
- More than £500,000 but not more than £1 million - £4,400
- More than £1 million but not more than £2 million – £9,000
- More than £2 million but not more than £5 million – £30,550
- More than £5 million but not more than £10 million – £71,500
- More than £10 million but not more than £20 million – £143,550
- More than £20 million – £287,500
If the relevant property were within the scope of ATED on 1 April 2024, both the return and payment were due by 30 April 2024. This covers the period 1 April 2024 to 31 March 2025. If the property is newly acquired, then ATED is due within 30 days of acquisition if the property comes within the scope of ATED after 1 April.
Are the any penalties for late ATED filing?
There can be penalties for late filings, late payment, or an inaccurate return. In the event that you disagree with an HMRC decision about your return there may be scope to appeal. Appellants have 30 days from the decision to write and tell HMRC the grounds on which they are appealing. HMRC's guidance has recently been updated with a correction to the contact details for appealing.
Contact Us
If you own a property through a company or other arrangement and are unsure if you need to pay any ATED or how much you are required to pay. Contact our specialist tax team today. We can help you preparing the filing for your ATED correctly and on time.