Donald Reid Group

Annual Tax on Enveloped Dwellings (ATED) return deadline is rapidly approaching

The Annual Tax on Enveloped Dwellings (ATED) was introduced to deter the ‘enveloping’ of high value residential property in corporate structures by imposing a fixed annual charge based on the value of the property held. Remember, your ATED return needs to be submitted by 30th April 2019.

ATED applies where:

  • Companies, partnerships with a corporate partner or collective investment schemes (collectively referred to as non-natural persons) hold an interest in a UK dwelling which could be used as a dwelling (subject to exclusions), and
  • That interest is valued at over £500,000 (the later of the valuation at 1 April 2017 or the date of acquisition).

In addition to these exemptions, reliefs are available to reduce the ATED charge to nil. These include (but are not limited to) where a property is used to let to a third party on a commercial basis or held as trading stock of a property development or trading business. The relief must be claimed.

Filing and payment

For 2019/20, where an interest in a UK dwelling is within the scope of ATED, a return or RDR needs to be submitted by 30 April if the property was held on 1 April.

Otherwise, a return needs to submitted:-

  • Within 30 days of acquisition, if a property within the scope of ATED, is acquired after 1 April.
  • For new build properties, within 90 days of the earliest of first occupation or first becoming a dwelling for Council Tax purposes.

If you think you could be affected by ATED, please do not hesitate to contact us at DRG Chartered Accountants to talk to our team of tax specialists.

For further information
Guidance: Annual Tax on Enveloped Dwellings


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