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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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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Where a determination is superseded by a self assessment, the penalty date for any additional amount payable is 31 days after the due date that would have applied if the ATED had been shown on a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.

FA09/SCH56

FA13/SCH34