Don’t dwell on your ATED obligations

16th November 2018

With only just under 6 months until the 2019/2020 ATED return filing deadline of 30th April 2019. It may be an appropriate time to consider whether your limited company may be obliged to submit an ATED return.

The annual tax on enveloped dwellings (ATED) applies to companies which own an interest in a residential property which exceeds the value of £500,000. It was originally brought in to reduce any tax advantages from holding high value homes within a limited company.

But with recent reductions to the threshold to £500,000 and the valuation date for which ATED is assessed on being brought forward to the 1st April 2017, there has been more properties being caught within the requirement to submit a return.

The standard ATED return is completed in advance of the year during April. However, some limited companies which have not filed a return previously may not be aware that if a residential property has been purchased between 1st April 2018 – 31st March 2019 which exceeded the £500,000 threshold then an ATED return will be due to HMRC within 30 days of purchase (90 days for the construction of a newly built dwelling).

If your limited company or property does not meet certain relief criteria, then your limited company will be due to pay the ATED charge on the same day as the filing deadline. This charge begins at £3,600 for properties valued between £500,000 and £1,000,000.

For those who have been used to submitting an ATED return on a yearly basis and have already filed a return then this covers multiple properties and the same relief for the whole period.

For HMRC’s technical guidance on ATED – https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance

Should you need any assistance in completing an ATED return for your company or whether your company is obligated to complete a return then speak to your office contact.



 
Other items in Blogs
 
Richard Alecock
12th September 2019 “Get ready for Brexit” workshops

  The Department for International Trade is hosting “Get ready for Brexit” workshops across the East region, each running from 11:30 – 13:30 followed by a networking lunch.   Please see the link below for dates and venues.   http://x.email.ukti.gov.uk/ats/msg.aspx?sg1=6a523609b267f7129747b384f8f21e3e

Read More »

Steven Denton
10th September 2019 Employer allowance – is it worth the hassle?

The £3000.00 employer allowance ceases at the end of the current tax year. From April 2020 employers will have to re-apply for a di minimis state aid based allowance.   A new HMRC checklist will have to completed to declare the following;   NIC contributions in the previous tax year were beneath £100,000; Confirmation that…

Read More »

Daryl Smith
10th September 2019 DELAYED – Domestic Reverse Charge VAT for Construction Services!

Brexit strikes again!  It appears that dreaded “B” word is not only good for grabbing headlines but also for causing H M Revenue & Customs a fair number of headaches.  Brexit has been blamed by the Revenue for everything from extended hold times on their phone lines to the delay in implementing their Making Tax…

Read More »

Jonathan Moore
5th September 2019 Gift Aid Guidance Update

HM Revenue & Customs have updated their Gift Aid for charities guidance.   In particular, the tables under sections titled The Benefit Rule, Charity Auctions and Educational School trips have been updated the latter of which will be of interest to charities involved in the running of schools and Educational Trusts.   The updated guidance…

Read More »

Karen Moore
3rd September 2019 National Payroll Week – Keeping the UK Paid

2019 marks the 21st Anniversary of National Payroll Week which is from 2 to 6 September 2019.   National Payroll Week recognises and celebrates the importance of payroll in business and the UK economy.  Not many people may know that there are 1.3 million employers in the UK and that Payroll is the largest expenditure…

Read More »

Amanda Newman
23rd August 2019 Changes in VAT for Contractors and Subcontractors

Confused by the new CIS reverse charge VAT rules that come into effect from 1 October 2019, then HMRC have issued further guidance at https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services#overview.   The basics are as from 1 October 2019 if you are a VAT registered subcontractor working for a contractor you will no longer be paid for the VAT element…

Read More »