ATED and nil returns

Too many agents come across the annual tax on enveloped dwellings (ATED) infrequently yet too late. Unfortunately a first experience for many arises on their property developers or letting business clients where no tax is even due but where the tight filing deadlines for inconvenient yet mandatory ‘nil returns’ have already expired.

For instance if a client had an interest in a dwelling held by a corporate entity at 1 April 2022 valued at £500 000 or more they are likely already to be liable to late filing penalties for the 2022-23 tax year if they did not file the return by 30 April 2022.

ATED potentially applies to UK residential properties held completely or partly within corporate envelopes (official terminology being ‘non-natural persons’) including companies partnerships with corporate partners and collective investment schemes.

It covers UK properties ...