ATED Filing Deadline: 30 April 2016

Leigh Collins:
Phone: +44 (0) 20 7833 3500
Date: Tue, April 05, 2016

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.

This article has been written for the general interest of our clients and contacts to stimulate further thought and enquiry. It does not contain answers to specific situations and it is therefore essential to treat it as a prompt to take specific advice on any real and particular issues. We believe that the facts as summarised in this article are correct as at the time of going to press in April 2016. If we discover that the article might be read in a way that conveys a misleading impression (whether by tone, content, error or omission) we will make the necessary changes and draw attention to what has been changed once we become aware of the need to do so. We will not be responsible for any action taken by a reader who relies on the article but does not seek further advice to answer any specific query.

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