ATED Return Amendment Guide: When & How | Tax Tips

Amending an ATED return isn't always straightforward, but it's a necessary process under certain circumstances. Whether you have claimed an ineligible relief, disposed of a property, or realised errors in your original submission, understanding when and how to make amendments is crucial.

Let's understand the procedures of amending ATED returns and ensure your tax affairs stay on track.

When to File an ATED Return

Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable by a company that owns UK residential property valued at more than £500,000. Companies satisfying this requirement on April 2022 must File an ATED return within the ATED due dates. The due dates will vary depending on when the property was acquired:

New Acquisition

If a company makes a new acquisition, an ATED return must be filed within 30 days of acquisition if it comes within the regime on or after 1 April.

Newly Built Property

When a company builds a property, the filing date is within 90 days of:

• The property becoming dwelling for Council Tax Purpose, or
• Its first occupancy

Whichever is earlier!

Any Other Case

If the situation is neither of the above cases, the ATED return must be filed by the 30^th April of the relevant year.

When to File an Amended Return

An amended ATED return isn’t always required. However, under following certain situations, it may be mandatory:

How to File an Amended Return

ATED returns can be amended via HMRC’s online service. However, this will only be true if the original return was filed online. Otherwise, an amended ATED paper return (Form ATED51) must be sent instead.

To request a paper return form, you must send an email to: paperforms.ated@hmrc.gov.uk specifying the type of form and the chargeable period of your choice.

A taxpayer can make an amendment to its return, or its return of adjusted chargeable amount within 12 months of the end of the chargeable period to which the amendment relates. However, if the return has been made late, the period in which the return can be amended is limited to a period of three months after the date of the return if longer.

When to Complete a Further Return

Under certain situations, amending the return may not be enough.  can file a further return if a change in circumstances means your tax increases, for example you are no longer able to claim a relief. You normally need to file this return 30 days after the end of the chargeable period to which it relates or 30 days from the start of the next chargeable period.

If you’ve filed a Relief Declaration Return and a property later becomes liable to tax - for example, that property is no longer eligible for a relief - a further return is required.

Conclusion

In conclusion, understanding when and how to amend an ATED return is crucial for compliance. Whether rectifying errors, updating relief claims, or reflecting property disposals, timely action ensures alignment with HMRC requirements.

Additionally, failure to amend an ATED return or complete a further return can result in significant penalties. Therefore, staying informed about the amendment requirements and deadlines is crucial.