Changes to ATED deadlines – ensure you remain compliant

11 August 2015

Although in recent years we have been used to the Annual Tax on Enveloped Dwellings (ATED) cycle being in April, as we mentioned in our April update, this year property owners have more than one deadline to contend with to remain ATED compliant.

Properties between £1,000,000 and £2,000,000

Properties in the £1-£2m price bracket held by an envelope (owned by a company, a partnership with a corporate member or other collective investment vehicle) will have to file their ATED return by the 1 October 2015. Any ATED tax liabilities will be due to be paid by 31 October 2015. This extended deadline for this price bracket is strictly for transitional purposes and for this year. For all future years, the deadline for both the annual return and any tax due will be 30 April.

For the avoidance of doubt, properties worth over £2m would have needed to file their ATED return by 30 April 2015.                                                                                                                             

Relief Declaration Return (RDR)

As highlighted in April, if you qualify for an ATED relief (for example you hold the property in an envelope and rent it out to a third party there are changes to the way the compliance will operate. This has also led to a transitional deadline (1 October 2015) for filing the new RDR. Once again, the new deadline is for this year only and ‘normal service’ will resume next year with the ATED return dates being 30 April 2016.

Whilst the deadline is looming, HMRC have still not released the RDR form that needs to be submitted so currently this Return still cannot be made.

We will be checking with HMRC regularly and will announce when the RDR has been issued via our @MHUpdates Twitter account and on our website. Please follow us to receive regular updates.

Whilst the timescales are short, it is important to remember that missing any of the deadlines will lead to automatic penalties being levied, even if you qualify for a relief!


From the 1 April 2016, enveloped properties worth £500,000 or more will fall within the ATED regime. Although we have no confirmation yet whether there will be similar transitional dates (1 October) for this bracket, if you have a property which is worth circa £500,000, it is important to consider your position under ATED.

Contact us

We strongly advise that your seek advice based on your specific circumstances, for more information please contact a member of our construction and real estate team or your local office contact. Alternatively, please email your enquiry to us.