NewsFriday 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.