Q. What is ATED and is there a deadline?

A. ATED is Annual Tax on Enveloped Dwellings and, yes, there is a deadline approaching. ATED was introduced on April 1, 2013, and whilst it has been with us for several years now, there are many who are not aware that ATED has mandatory filing requirements.

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000. The ATED charge is calculated based on a banding system depending on the value of the property.

ATED returns must be submitted in April each year for the fiscal year in advance. So, for 2019/2020, ATED returns and any ATED charge must be submitted and paid over to HMRC by April 30, 2019, for any properties held at the start of the tax year.

You can work out the value yourself or you can use a professional valuer and the valuation date you need to use depends on when you owned the property.

There are reliefs available that can eliminate or reduce the ATED charge and there are exemptions from ATED. These are charitable companies using the dwelling for charitable purposes; public bodies and bodies established for national purposes. If you meet the conditions for an exemption, you don’t need to file a return.

All companies owning residential property worth more than £500k must submit either the ATED return or submit a claim for relief unless they are exempt. Review your businesses’ property portfolio ahead of the April 30, 2019, ATED filing deadline. Penalties will be incurred for late payment and filing.