UK residential property and the Annual Tax on Enveloped Dwellings (ATED) – HMRC letter campaign

HMRC have recently sent a letter to certain non-resident companies that own UK residential property. These companies have filed ATED returns for the property since 2018, but information in HMRC’s possession shows that the ATED bands used in the returns may be incorrect and the companies may need to tell HMRC about more tax that is due by making a disclosure. This letter will be accompanied by a Certificate of Tax Position and a Notice of Intention to Disclose.

UK residential property and the Annual Tax on Enveloped Dwellings – letter

The letter is linked to their campaign to tackle non-compliance connected with offshore corporates owning UK property. For information about other letters HMRC are issuing and guidance the CIOT has produced to assist members in deciding the most appropriate way to respond should a client receive a letter from HMRC, see our news item Offshore Corporates Owning UK Property – HMRC letter campaign and Guidance for CIOT members.