ATED return and charge for 2021
Annual Tax on Enveloped Dwellings (ATED) is a yearly tax charge payable by UK resident Companies that hold UK Residential property has a value at more than £500,000.
You’ll need to submit an ATED return if the property:
- Regarded as dwelling, such as house or flat but there are some properties which are not classified as dwellings.
- Is in the UK and it has a value more than
- £500,000 after 2017 onwards
- Owned by UK Resident company, or
- Partnership if is a company, or
- Investment schemes, such as trust or open-ended investment vehicle.
Returns needs to be submitted on or after 1 April in any chargeable period. However, there are certain relief available if certain conditions are met.
How to Qualify:
- the business is in property rental business; and
- it must be kept on a commercial basis with a view of making profit.
- The property is let to a third party, not the owner.
- Any losses, relief can be still available if certain steps are taken such as advertising the property for rent.
To make a claim for the relief you will need to submit a Relief Declaration Return using the online ATED services.
However, if the relief is not available then what you will pay is based on the value of the property as follows:
|Value of property||Annual charge|
|More than £500,000 up to £1 million||£3,700|
|More than £1 million up to £2 million||£7,500|
|More than £2 million up to £5 million||£23,500|
|More than £5 million up to £10 million||£59,100|
|More than £10 million up to £20 million||£118,600|
|More than £20 million||£237,400|
You must submit your return and pay the taxis within 30th April 2021 if it was held by the 1st April 2021 and within 30 days if it was held after the 1st April.