HMRC’s Wealthy Forum has shared a briefing with Chartered Accountants Ireland which sets out that letters are now being sent to companies where HMRC believes that the company purchased a dwelling/residential property worth £500,000 or more from 1 June 2020 and the company has not filed an Annual Tax on Enveloped Dwellings (“ATED”) return and paid the relevant ATED tax.

ATED is an annual tax payable on residential properties valued at £500,000 or more which are owned by a company, partnership or collective investment scheme. On receipt of the letter, if the company believes they are not liable for the ATED then they must explain why.

The letter also advises that a determination will be issued after 30 days if the company does not either file an ATED return or contact HMRC to explain why they believe they are not liable.