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Annual Tax on Enveloped Dwellings (ATED) – are you affected?

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Sally Walmsley
Written by Sally Walmsley

Homeowners with homes worth more than £500,000 that are owned through a limited company are being reminded they must fill in an ATED return.

Annual Tax on Enveloped Dwellings is a yearly tax on UK residential property worth more than £500,000 and the return must be filed in April.

Tens of thousands of landlords made the decision to incorporate following last years’ mortgage interest relief announcement in a bid to reduce tax liability, but may not be aware of their obligations.

You’ll need to complete an ATED return if your property is:

  • a dwelling situated in the UK
  • owned completely or partly by a company, a partnership where at least one of the partners is a company, or a ‘collective investment vehicle’
  • valued at more than £500,000 on 1 April 2012, or on acquisition if later

There are reliefs which mean you may not have to pay for annual tax on enveloped dwellings, for example, if the property is let to a third party on full commercial basis. However, you can only claim these reliefs if you submit an ATED Return.

You can find out more about ATED by clicking here.  

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Communications Manager for the RLA and Editor of RPI magazine. With 16 years’ experience writing for regional and national newspapers and magazines she is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and editorial content for our media partners.

She issues press releases promoting the work of the RLA and its policies and campaigns to the regional and national media and works alongside the marketing team on the association’s social media channels to build support for the RLA and its work.

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