Annual Tax on Enveloped Dwellings

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.

https://www.gov.uk/guidance/register-for-the-annual-tax-on-enveloped-dwellings-online-service

However, if the relief is not available then what you will pay is based on the value of the property as follows:

You must submit your return and pay the taxis within 30^th April 2021 if it was held by the 1^st April 2021 and within 30 days if it was held after the 1^st April.

To discuss how Accountants in Slough can assist you with your Accounts Preparation, please contact us for a free, no obligation consultation on: 01753 373 505 or complete our Contact form and we will get back to you.