Annual Tax on Enveloped Dwellings (ATED) – Is your company liable?

ATED was introduced by HMRC several years ago as an annual tax payable by companies (or indeed a partnership where there is a corporate partner) that own UK residential properties.

Initially, the tax charge was only payable by those companies that owned a property valued at more than £2m but slowly the level of the valuation has reduced over the years such that a company which owns a residential property worth more than £500,000 (at 1 April 2012 or date of acquisition if later) from 1 April 2016, may be liable to pay the ATED.

Many companies may find themselves falling into the ATED net and subject to paying the tax charge. There are certain reliefs available to mitigate the ATED charge but this does not mean that a return should not be completed.

The ATED return and payment date is 30 April 2016 and penalties will be payable if a return or payment is late.

If you wish to discuss matters further, please make contact with a member of our tax team on the following numbers:

Darlington – 01325 349700
Durham – 0191 3842244
York – 01904 784400