The annual tax on enveloped dwellings (ATED) now applies to residential properties worth over £1m that are owned by a company, or a partnership with one or more corporate members, or in some cases a unit trust.
The ATED charge starts at £7,000 per year for properties worth over £1m but no more than £2m, and increases in steps to £218,200 per year for properties worth over £20m. This tax is normally payable to HMRC by 30 April within the year that charge applies to, which starts on 1 April.
So for most properties the 2015/16 ATED charge is payable by 30 April 2015 unless a relief or exemption is claimed. Although owners of properties which are in the lowest valuation band for 2015/16 (over £1m and not more than £2m) have until 31 October 2015 to pay this year’s ATED charge.
Many companies and specific properties qualify for relief from ATED, but the relief must be claimed on an ATED return. Companies whose trade is: commercial letting, property development or property trading should qualify for relief from ATED and need to claim that relief on an ATED relief declaration return for their whole portfolio of properties.
If you would like us to submit an ATED return on your behalf, you need to complete a special ATED authorisation form: ATED1.