ATED penalties incorrect -Success in the tax tribunal

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44(0)330 024 3200 and discover how we can help you.

ATED stands for Annual Tax on Enveloped Dwellings. It is an annual tax charge paid by corporate entities that hold UK residential properties over a certain value.

Those affected must file an ATED return and make any payments due by 30 April each year. There are penalties for non compliance, however, we have found that some penalty notices have been issued incorrectly. 

We have recently represented a client in the tax tribunal against HMRC, to dispute ATED penalties that we believed were incorrect. The tribunal found in favour of our client, meaning our client has saved more than £6000 in penalty payments.


If you have been issued with an ATED penalty, it is possible that the same error has been applied and we therefore recommend that you do not pay this and contact us for help. We can review your penalty to assess its validity and then make a representation to HMRC on your behalf. If you have already paid the penalty, you may be eligible for a refund.

For more information or to speak to one of our ATED experts, please contact Linda Cooney on 01923 634440 linda.cooney@hhllp.co.uk or  Liam Henry on 01923 634416  liam.henry@hhllp.co.uk

For a more detailed look at ATED, download our ATED Fact sheet.