Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

ATED and nil returns

22 August 2022 / Rob Durrant-Walker
Issue: 4854 / Categories: Comment & Analysis
91350
Nil return menace

Key points

  • The annual tax on enveloped dwellings (ATED) potentially applies to UK residential properties held within corporate envelopes.
  • Nil returns may be due even when no tax is due.
  • Late filing penalties may be due on a return submitted after the due date.
  • HMRC expands on the definition of ‘dwelling’ in its ATED technical guidance.
  • Tax agents should state in their engagement terms whether they are advising the client on ATED.

Too many agents come across the annual tax on enveloped dwellings (ATED) infrequently yet too late. Unfortunately a first experience for many arises on their property developers or letting business clients where no tax is even due but where the tight filing deadlines for inconvenient yet mandatory ‘nil returns’ have already expired.

For instance if a client had an interest in a dwelling held by a corporate entity at 1 April 2022 valued at...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

back to top icon