News

Friday 26th May 2017

Annual tax charge on companies owning property (ATED)

When ATED was first introduced on 1 April 2013 it only applied to property valued at more than £2million.  Since it's introduction in the threshold has lowered twice.  From 1 April 2016 a property valued at £500,000 and owned by a company will come with the ATED charge for the first time.

Property value Annual charge
More than £500,000 but not more than £1 million £3,500
More than £1 million but not more than £2 million £7,050
More than £2 million but not more than £5 million £23,550
More than £5 million but not more than £10 million £54,950
More than £10 million but not more than £20 million £110,100
More than £20 million £220,350

There are numerious reliefs to avoid the charge centered around the commercial use of a property.  The releifs must be claimed on the ATED return and are not given by default.  Failure to make a ATED return can result in penalties of £1,300 a year even if no ATED is due.  The filing of the ATED return is tight with only 30 days given from 1 April each year.  If you think you may have missed the 30 April deadline and are concerned your company needs to make a return.  Please get in touch.