“Annual Tax on Enveloped Dwellings” is a tax that levied on UK residential properties that are owned by companies, partnerships or collective investment schemes. The tax was introduced in 2013 as a way to discourage the use of corporate structures to hold high-value residential properties and to raise revenue for the UK government.
The tax is payable by the owner of the property and the amount of tax payable depends on the value of the property. There are different bands of tax payable, depending on the value of the property, and the rates of tax increase as the property value increases.
Properties that are used for certain purposes, such as rental properties or those used for trading, are exempt from the tax. There are also reliefs available for certain types of property, such as those used for charitable purposes.
An ATED return must be filed every year by the owner of a residential property in the UK that falls within the scope of the Annual Tax on Enveloped Dwellings (ATED). The deadline for filing the return and paying any tax due is 30 April of the relevant chargeable period. The chargeable period for ATED runs from 1 April to 31 March the following year.
For example, if you are the owner of a property that falls within the scope of ATED for the chargeable period of 1 April 2022 to 31 March 2023, you must file your ATED return and pay any tax due by 30 April 2023.
It is important to note that even if you think your property is exempt from ATED or if you are claiming relief, you still need to file an ATED return to declare this. Failure to file the return on time or to pay any tax due can result in penalties and interest charges.