CH155430 | Penalties for Failure to Pay on Time: Rules for specific taxes: Annual Tax on Enveloped Dwellings (ATED): Penalties: Failure to pay all or part of amounts due - overview

If a person fails to make full payment of Annual Tax on Enveloped Dwellings (ATED) by the due date, they become liable to a penalty on the amount unpaid.

The penalties for failing to pay ATED in full and on time are

• an initial penalty of 5% for tax unpaid at the penalty date, see CH155440, and

• two further penalties of 5% each for tax unpaid at 5 and 11 months after the penalty date, see CH155450.

So a failure to pay that continues for 11 months after the penalty date can incur all of these penalties on the same unpaid tax.

It is important to distinguish between

• the due date - the date when the person needs to pay the tax, and

• the penalty date - which is 31 days after the due date and the first date on which a penalty is chargeable for a tax period.

There are special rules for the penalty dates relating to assessments in the absence of a return, corrections and amendments, see CH155480.

FA09/SCH56/PARA3

FA13/SCH34