• Home
  • >
  • Blogs
  • >
  • ATED Return Amendment Guide: When & How | Tax Tips

ATED Return Amendment Guide: When & How | Tax Tips

Published by Susan Basnet
Published Date: April 24, 2024

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 Submit 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 30th April of the relevant year.

When to Submit an Amended Return

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

01

Claiming a relief, you were not eligible for earlier

If your property was not eligible for the ATED relief at the time of filing the return but it’s eligible for the relief now, in such situations, an amended return must be submitted to the HMRC. 

02

Disposing of a property

HMRC clearly states that where the relief has been claimed, whether online or on paper, and later the property is disposed of meaning that you no longer need to claim that relief, you must write to HMRC explaining that the property has been sold or disposed of and that you no longer need to submit a Relief Declaration Return. The letter must be posted to the following address:

HMRC

Stamp Taxes

BX9 1HD

United Kingdom

03

Realising that the information in the original return was wrong

If you have already filed the ATED return and later realise that the information you entered was wrong, you must amend the original return. The procedure for amending the return will be explained in the subsequent section.

How to Submit an Amended Return

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

ated return

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.

For Example, 

A Ltd. filed the ATED return for the chargeable period 2024-25 on 5th April 2024. In this scenario, as the return has been filed on time, A Ltd. can amend its return by 31 March 2026.

In contrast, Let’s say B Ltd. filed the ATED return for the same chargeable period on 1 June 2024. As the return has filed following the deadline, the period for making the amendment will be limited to 31 August 2024.

When to Complete a Further Return

Under certain situations, amending the return may not be enough.  can submit 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 submit 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 submitted 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.

For Example, 

If the change happened in the period 1 April 2023 to 31 March 2024, you should submit it by 30 April 2024.

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.

Need expert advice on when and how to submit Amended return?

Contact us today for efficient and hassle-free assistance.

Susan Basnet
Our Complete Guides
Related Posts

Trust UK Property Accountants to Optimise Returns and Minimise Hassles!

Reach Out to Us Today and Let's Shape
Your Success Together!

Success message!
Warning message!
Error message!