If any company (wherever that company is incorporated) holds residential property in the UK, an annual tax return (“ATED”) must be filed. Even if no tax is due because, for example, the property is not rented out but has a value of over £500,000, a tax of at least £3,700 is due and must be declared by means of an ATED return. As the value of the property increases the tax goes up disproportionately.
If the property is rented out, a nil ATED return must still be completed, a normal tax return must be filed in addition.
If this is not done in time, there is not only the threat of back tax and penalty tax. Failure to register for ATED can also delay a potential transfer of the property to a new owner for up to one year.
ATED has been mandatory since April 2013. If your company is not yet registered, this should be done as soon as possible.
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Author: Martin Hütte
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