Annual Tax on Enveloped Dwellings

Category: LeisureTaxation - Posted On: Jun 15 2017


Do you own your FHL property through a limited company or mixed member partnership?

If so, and any one property is valued at more than £500,000 then you will have been required to complete and submit an ‘Annual Tax on Enveloped Dwellings’ (ATED) return by 30 April. Relief from the ATED charge, which starts at £3,500, can apply to properties which are let on commercial terms, but a return still had to be submitted and relief claimed.

The ATED charge does not apply to properties held for qualifying purposes. These include properties held as trading stock by a property trader, properties held for development and resale, farmhouses occupied by a farmworker and properties held by landlords who are unconnected to their tenants and who charge a full market rent.

However, although an ATED charge may not apply, an ATED Relief Declaration Return will still be required in order to claim relief from the ATED charge where the property value is in excess of £500k.

For further information or advice, contact our Leisure or Taxation teams today.