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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 £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.

»Ê¹ÚÌåÓýapp due date is 30 April 2014. »Ê¹ÚÌåÓýapp penalty date is 31 days after the due date and so is 31 May 2014. »Ê¹ÚÌåÓýapp penalties are as follows.

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

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 £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.

»Ê¹ÚÌåÓýapp due date is 30 April 2015. »Ê¹ÚÌåÓýapp penalty date is 31 days after the due date and so is 31 May 2015. »Ê¹ÚÌåÓýapp penalties are as follows.

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