The annual tax on enveloped dwellings (“ATED”) is an annual tax charge made on residential property held in a limited company, or owned by a partnership with at least one corporate member. The charge applies to all properties worth over £500,000 on 1 April 2017 or, if later, at acquisition.
For each property falling within the charge on 1 April 2019, the deadline for filing an ATED return and making the related payment is 30 April 2019.
There are a number of exemptions from ATED, for example for charitable companies and public bodies. There are also a number of reliefs to ensure that, for example, working farmhouses and commercially let residential properties are not caught. However, please note that these reliefs must be actively claimed and so an ATED return is still required.
Please get in touch with your usual Ryecroft Glenton contact on 0191 281 1292 if you think you might be affected by ATED, or if you would like to discuss any of the above in further detail.