Penalties for Failure to Pay on Time: Rules for specific taxes: Annual Tax on Enveloped Dwellings (ATED): Penalties: Assessments in absence of a return, amendments and corrections
A person is liable to a penalty where they pay late an amount of Annual Tax on Enveloped Dwellings (ATED) that results from
- HMRC issuing a determination in the absence of a return,
- the person amending their return to correct an inaccuracy,
- HMRC correcting obvious errors or omissions in a return,
- HMRC amending the return during an enquiry to prevent a loss of tax,
- HMRC amending the return on completion of an enquiry, or
- HMRC making an assessment other than in the absence of a return.
See below for what the penalty date is for each of these.
Determination made in the absence of a return
Where we have issued a determination in the absence of a return for a period, the penalty date is 31 days after the due date that would have applied if the ATED had been shown on a timely return for that period.
Where a determination is superseded by a self assessment, the penalty date for any additional amount payable is 31 days after the due date that would have applied if the ATED had been shown on a timely return for that period.
Assessments, other than in the absence of a return, and amendments (including consequential amendments in a partnership case) or corrections of a return
Where further tax is due and payable resulting from an assessment, amendment or correction of a return, the penalty date is 31 days after the due date for this further tax. The person is liable to an initial penalty of 5% of the amount unpaid at the penalty date.
Note that if a person makes an amendment or correction to a return, this may indicate that the original return was incorrect and that they may be liable to an inaccuracy penalty under Schedule 24 FA07.