CH155470 - Penalties for failure to pay on time: rules for specific taxes: Annual Tax on Enveloped Dwellings (ATED): penalties: examples

Example of initial and further penalties on an amount of Annual Tax on Enveloped Dwellings (ATED)

Example 1 - Amount due during the relevant year

T Limited delivers its 2014-15 return on 30 April 2014, showing 拢35,900 of ATED due that date. But it fails to make any payment. T Limited makes some payments at later dates, as shown in the table below.

The due date is 30 April 2014. The penalty date is 31 days after the due date and so is 31 May 2014. The penalties are as follows.

听 Payment Unpaid Tax Penalty
Amount due at 30 April 2014 拢35,900 听 听
Initial penalty of 5% on 拢35,900 at 31 May 2014 听 拢1,795 听
Payment 10 June 2014 拢15,900 拢20,000 听
5 month further penalty of 5% on 拢20,000 at 31 October 2014 听 拢1,000 听
Payment 1 December 2014 拢10,000 拢10,000 听
11 month further penalty of 5% on 拢10,000 at 30 April 2015 听 拢500 听
Payment 12 May 2015 拢10,000 拢0 听
Total penalty 听 拢3,295 听

Example 2 - Amount due after the end of the relevant year

S Limited delivers its 2014-15 return of adjusted chargeable amount on 30 April 2015, showing 拢35,000 of ATED due on 30 April 2015. But it fails to make any payment. S Limited makes some payments at later dates, as shown in the table below.

The due date is 30 April 2015. The penalty date is 31 days after the due date and so is 31 May 2015. The penalties are as follows.

听 Payment Unpaid Tax Penalty
Amount due at 30 April 2015 拢35,000 听 听
Initial penalty of 5% on 拢35,000 at 31 May 2015 听 拢1,750 听
Payment 20 June 2015 拢15,000 拢20,000 听
5 month further penalty of 5% on 拢20,000 at 31 October 2015 听 拢1,000 听
Payment 1 January 2016 拢10,000 拢10,000 听
11 month further penalty of 5% on 拢10,000 at 30 April 2016 听 拢500 听
Payment 24 May 2016 拢10,000 拢0 听
Total penalty 听 拢3,250 听