Don’t dwell on your ATED obligations

16th November 2018

With only just under 6 months until the 2019/2020 ATED return filing deadline of 30th April 2019. It may be an appropriate time to consider whether your limited company may be obliged to submit an ATED return.

The annual tax on enveloped dwellings (ATED) applies to companies which own an interest in a residential property which exceeds the value of £500,000. It was originally brought in to reduce any tax advantages from holding high value homes within a limited company.

But with recent reductions to the threshold to £500,000 and the valuation date for which ATED is assessed on being brought forward to the 1st April 2017, there has been more properties being caught within the requirement to submit a return.

The standard ATED return is completed in advance of the year during April. However, some limited companies which have not filed a return previously may not be aware that if a residential property has been purchased between 1st April 2018 – 31st March 2019 which exceeded the £500,000 threshold then an ATED return will be due to HMRC within 30 days of purchase (90 days for the construction of a newly built dwelling).

If your limited company or property does not meet certain relief criteria, then your limited company will be due to pay the ATED charge on the same day as the filing deadline. This charge begins at £3,600 for properties valued between £500,000 and £1,000,000.

For those who have been used to submitting an ATED return on a yearly basis and have already filed a return then this covers multiple properties and the same relief for the whole period.

For HMRC’s technical guidance on ATED – https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance

Should you need any assistance in completing an ATED return for your company or whether your company is obligated to complete a return then speak to your office contact.

Other items in Blogs
Millie Hunt
4th July 2022 Covid: Could you claim for business interruption?

  If your business was adversely impacted by the coronavirus pandemic, then you may wish to consider whether your insurance covered you for business interruption – as you could be due an insurance pay-out in relation to your loss of earnings. When calculating your loss of earnings, there are a number of factors that you…

Vanessa Pearson
1st July 2022 R&D Tax credit repayment delays

The Chartered Institute of Taxation (CIOT) has been asked by HMRC to share the message below about the recent pausing of Research & Development Tax Credit (RDTC) payments with their members.   Message from HMRC: “We previously notified agents that we have paused some Research & Development Tax Credit (RDTC) payments while we investigate an increase…

Joe Fretwell
1st July 2022 Is your PAYE code correct?

With the rising cost of living, it has never been more important to ensure you are paying the correct amount of tax through your PAYE tax code. It is important to understand your tax code, any changes to this and why your tax code on your payslip is what it is. There are many reasons…

Ruth Pearson
23rd June 2022 Changes to National Insurance

In April 2022 we saw Employee’s National Insurance Contributions increase by 1.25% from 12% to 13.25%, as part of the Governments Health and Social Care levy. Employer’s National insurance also increased from 13.8% to 15%. From April 2023, the health and social care levy will be paid separately to National Insurance and become a tax…

James Selby
23rd June 2022 Pensions Contributions: Maximise tax relief

We are seeing more and more cases of individuals missing out on claiming higher rate tax relief on their employee pension contributions especially where they are not in self-assessment and required to file tax returns.   Where employers have enrolled their staff to make employees pension contributions via a ‘relief at source’ scheme, the contributions…

Paul Jefferson
14th June 2022 VAT Penalty Changes

A new penalty regime will come into effect for VAT periods starting on or after 1 January 2023. The changes will impact the charges for missing VAT filing and payment deadlines and will be replacing the current surcharge system. These changes place continued importance on being up to date with your VAT returns, aware of…