Residential Property Held Via A Company Or LLP (With A Corporate Partner)
Any non-natural persons (e.g. company or LLP with a corporate partner) currently holding a UK residential property valued at more than £500,000 may be required to submit an ATED (Annual Tax on Enveloped Dwellings) return and pay an annual charge.
Relief from the charge is available but a claim must still be submitted by 30 April 2016.
The most common relief from an ATED charge is available where the UK residential property is let to a third party on a commercial basis and is not occupied by anyone connected with the owner.
Annual chargeable amounts for the 2016/17 period are as follows:
|Property Value As At 1 April 2012
(or the value at acquisition if later)
|Annual Chargeable Amount
|More than £0.5 million but not more than £1 million||£3,500|
|More than £1 million but not more than £2 million||£7,000|
|More than £2 million but not more than £5 million||£23,350|
|More than £5 million but not more than £10 million||£54,450|
|More than £10 million but not more than £20 million||£109,050|
|More than £20 million||£218,200|
The significant decrease in the exemption threshold from £1,000,000 to £500,000 means that previously exempt entities will now need to submit an ATED return and pay the annual charge or file a relief claim.
Failure to make a return or late filing and payment will lead to penalties and interest being charged as per the self-assessment regime.
We offer fixed fees for this service allowing you to ensure the relevant UK 2016/17 ATED returns and relief claims are submitted to HMRC by 30 April 2016.
Please contact your usual Frank Hirth adviser for assistance.