ATED: Are you ready for the approaching deadline?
04/04/25
Companies that own residential properties such as houses or flats must consider whether they fall within the Annual Tax on Enveloped Dwellings (ATED). If your company is affected, you will need to file an annual ATED return with HMRC and may also have to pay an annual ATED charge. ATED returns for the year ending 31 March 2026 must be filed by 30 April 2025, just one month after the return period starts.
Who does ATED affect?
ATED mainly affects companies that own a UK residential property valued above £500,000 as of 1 April 2022, or on acquisition if later. If the property is suitable for residential use, it is caught by ATED even if it’s not actually being lived in, for instance if it is being used as an office or renovated.
The ATED charge is based on property value bands. For 2025/26, the charge begins at £4,450 for a property valued between £500,000 and £1m. The annual charge can rise as high as £292,350 for a property valued above £20m.
Are there exemptions?
Certain companies may be eligible for ATED relief, which must be claimed through a Relief Declaration Return by 30 April. The most common examples of reliefs include reliefs for property rental businesses, property developers, property traders, charitable organisations and social housing. Various conditions apply and the relief must be claimed.
What do you need to do?
With the upcoming deadline of 30 April 2025 to file ATED returns and pay any ATED charge due, it’s important to check if your company owns any properties which may be caught by the ATED rules. Failure to submit an ATED return by 30 April will result in your company incurring penalties. Penalties can be charged if you fail to file your return on time, do not pay on time or submit an inaccurate return, so it’s vital to understand the implications to avoid incurring any additional costs.
How we can help
At mgr, our expertise in the property sector enables us to assist clients with their ATED returns. Our tailored advice to each individual company’s circumstances allows our clients to access all the reliefs available and meet their tax deadlines.
With just over three weeks to go until the ATED deadline, contact Nerissa Payne at nerissa.payne@mgr.co.uk for further guidance tailored to your situation.
