The final version of the tax return for the new Annual Tax on Enveloped Dwellings (ATED) has been published by HMRC. So, now is the time to start thinking about whether ATED applies to you or your clients.
ATED is only a potential concern if a corporate entity, or a partnership with a corporate member, or a collective investment scheme, owns UK real estate that is used for residential purposes and is worth £2,000,000 or more. Even then ATED may not apply because there are a number of reliefs for the likes of property developers, property traders and those running a property rental business.
It is also essential to submit an ATED tax return in order to claim any relief that is due. Sadly the relief does not apply automatically and exempt the owner from the need to submit an ATED tax return! An ATED return will need to be submitted for each ATED tax year in which the relief is due.