April tax deadline looms for residential property in companies

12th February 2019

If you hold a residential property in a company, you need to pay the Annual Tax on Enveloped Dwellings (ATED) by 30 April 2019.

There is an annual ATED return that has to be completed, even where a residential property is exempt from the tax.

ATED has to be declared and paid by 30 April 2019 for the year 1 April 2019 to 31 March 2020 and the rates of tax for this charge are set out below.

The charge was first introduced from 1 April 2013 to tackle the avoidance of stamp duty land tax (SDLT). The charge relates to residential property owned by a non-natural person, meaning generally a company or a partnership with a corporate member.

When the charge initially took effect it only applied to properties with a value in excess of £2m, but the threshold has since reduced to £500,000, catching many more properties in the net.

The 2019/20 charge is based on the value of the property at 1 April 2017, or the value at the date it is acquired if later. The increase in the charge is linked to the consumer price index.

If you would like to discuss whether your company might be liable to ATED, please contact us for advice.

Property value Charge 2019/20 Charge 2018/19
 £500,001 - £1m  £3,650  £3,600
 £1m - £2m  £7,400  £7,250
 £2m - £5m  £24,800  £24,250
 £5m - £10m  £57,900  £56,550
 £10m - £20m  £116,100  £113,400
 More than £20m  £232,350  £226,950









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