Do you need to submit an ATED return?

ATED is Annual Tax on Enveloped Dwellings. It’s an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.

Even though it has been with us for several years now there remain a lot of people who are still not aware that ATED has mandatory filing requirements.

The ATED charge is calculated based on a banding system depending on the value of the property.

ATED returns must be submitted in April each year for the fiscal year in advance. So, for 2020/2021, ATED returns and any ATED charge due must be submitted and paid over to HMRC by 30 April 2020 for any properties held at the start of the tax year.

You can work out the value yourself or you can use a professional valuer and the valuation date you need to use depends on when you owned the property.

There are reliefs available that can eliminate or reduce the ATED charge and there are exemptions from ATED. These include charitable companies using the dwelling for charitable purposes; public bodies and bodies established for national purposes. If you meet the conditions for an exemption, you don’t need to file a return but you must submit a claim for relief.

In short, all companies owning residential property worth more than £500k must submit either the ATED return or submit a claim for relief unless they are exempt. Click here to read our comprehensive guide to ATED requirements.

Review your businesses property portfolio ahead of the 30 April 2020 ATED filing deadline because penalties will be incurred for late payment and filing.

For more advice on ATED return or any of your tax needs, please contact us.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

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