The deadline for submission of an ATED return for the current tax year is fast approaching and companies holding properties affected by ATED which have not already submitted their returns are advised to do so as soon as possible to avoid missing the 1 October deadline.
By way of background, the ATED (or Annual Tax on Enveloped Dwellings) was introduced by the Finance Act 2013. It applies to any dwelling worth over £2 million which is owned by a non-natural person or body, such as a company or a partnership with corporate members. Affected properties are subject to an annual flat rate charge, payable by the property owner, which ranges from £15,000 to £140,000 depending on the value of the property.
Reliefs are available for genuine businesses, including property rental and property development businesses, as well as specified activities, such as social housing. However, whilst these reliefs will entirely eliminate the charge, they must first be claimed by submitting a return.
Only certain specified bodies and charitable companies are exempt from the requirement to actually submit an ATED return. Note that the charitable exemption will not apply if the property in question is jointly owned or if it is in the ownership of a non-charitable subsidiary. In such circumstances, a return would still be due even if a relief ultimately applied.
The ATED return is submitted annually to HMRC and will normally be due, along with payment, by 30 April after the start of each tax year. However, due to timing of the introduction of ATED, the deadline for 2012/13 returns is 1 October 2013 and the tax payable will be due by 31 October 2013.
If you have any questions about ATED or are concerned that you may need to file a return and haven’t yet made arrangements to do so, please contact Zoe Roberts.
