The ATED filing deadline is fast approaching
If you own a company with residential property you may be aware of the Annual Tax on Enveloped Dwellings return. This is an online declaration and return which needs to be submitted each year by 30th April.
Do all companies with property have to submit the ATED return ? The simple answer is no, there are a few criteria.
You do need to submit an ATED return if:-
- The property is in the UK and has a value of £500k or more
- Is classified as a dwelling by HMRC ( does not apply to care homes, hospitals, hotels etc.)
Even though the company may be required to submit a return, there are some exemptions which mean no tax is payable. The most common exemptions apply if the property:-
- Is let to a third party on a commercial basis (with no connection to the owner of the company)
- Being used as a trading business to provide accommodation for qualifying employees
- Is being developed for resale by a property developer
Further details of all the exemptions can be found on HMRC’s website.
If the company does not meet any of these exemptions then the annual charge for a valuation of £500,000 Is currently £4,450. This charge increases steadily up to the maximum of £292,350 based on a property valuation of more than £20 million.
It is important to file even if you do not think the company will have tax to pay, as HMRC do charge penalties for not filing, late filings and inaccurate returns.
If you own a property company and want to feel like you are in safe hands, get in touch with us today at info@oneaccounting.co.uk to discuss more.
