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Last updated: 6 Apr 2021

Imminent deadline for 2021/22 ATED compliance

If your company holds residential property with a market value in excess of £500,000 you should start submitting your 2021/22 Annual Tax in Enveloped Dwellings (ATED) return or relief declaration form from 1 April 2021. Payment is due on or before 30 April 2021.

What is ATED?

Annual Tax in Enveloped Dwellings (ATED) was introduced in the 2013 Finance Act to deter the holding of high value residential properties within a corporate structure. It works by imposing a fixed annual charge based on the value of the property held.

Unlike other UK tax regimes, the ATED tax year runs from 1 April to 31 March and requires returns to be submitted at the start of the annual period, rather than the end. Failure to submit an ATED return on time will result in penalties and interest charges.

About the author

Jessica Beere

+44 (0)20 7556 1282
beerej@buzzacott.co.uk
LinkedIn

What is ATED?

2021/22 compliance

For the period 1 April 2021 to 31 March 2022, you must complete the ATED annual compliance documentation between 1 April and 30 April 2021. For this compliance season, the value of the property for ATED purposes is the market value as at 1 April 2017. If you acquired the property after this date, the value at acquisition is used to determine which charge applies. If you acquire residential property part-way through an ATED year, all ATED compliance (including payment of the pro-rated ATED charge) should be completed within 30 days of acquisition.

The ATED charges for the period 1 April 2021 to 31 March 2022 are as follows:

Property value	Annual charge
More than £500,000 up to £1 million	£3,700
More than £1 million up to £2 million	£7,500
More than £2 million up to £5 million	£25,300
More than £5 million up to £10 million	£59,100
More than £10 million up to £20 million	£118,600
More than £20 million	£237,400

How to submit your ATED return or relief declarations

Your ATED returns and relief declarations should be submitted using HMRC’s ATED online service, which has been in place since 1 April 2018. You can register for the service in advance, which we recommend to ensure you are set up in time to meet the deadline. However, submissions can only be made within the April ATED submission window.

Get in touch

If you hold or are considering investing in UK residential property valued in excess of £500,000, are unsure as to whether ATED applies to properties in your situation, or if you think that ATED deadlines may have been missed in the past, please fill out the form below and one of our experts will be in touch to discuss your requirements.