The annual tax on enveloped dwellings (ATED) is payable for UK residential properties worth over £500,000 which are owned by companies or other non-natural persons. The 2020/21 chargeable year runs from 1 April 2020, and the ATED return and payment must be received by HMRC by midnight on 30 April 2020.

You may believe that no ATED charge is due because the property is commercially let, or some other relief applies. In that case an ATED relief declaration must be filed by 30 April, but this form can cover a number of properties.

The quickest way to submit ATED returns and relief declarations is to use the ATED online service. You need to register with this service as an agent to submit your clients’ ATED forms. Each client must also be registered using their UTR number, and appoint you as their agent for ATED.

All overseas companies that let UK residential properties should now have a UTR number for corporation tax, as they need to pay corporation tax on their UK property income from 6 April 2020.

The online ATED service will calculate the ATED charge due, but you need to chose the valuation band for the property. This will be the value as at 1 April 2017 or the acquisition date if later.

If the property value is within 10% of a band boundary you can use the structured email form to ask for an ATED banding check, but it could take 30 days or more to get a reply. To avoid penalties for late ATED forms, it would be better to submit the ATED return using the valuation you have and amend it later.