Annual Tax on Enveloped Dwellings (ATED)
What is required?
An ATED return is required to be completed if your company owns a dwelling in the UK that is valued at more than £500,000. There are reliefs from an ATED tax liability in certain situations such as where the property is rented to a third party at a commercial rent. A return will however still be required in order to claim these reliefs.
ATED returns need to be submitted online to HMRC between 1 April and 30 April in any chargeable period. The next return due for submission is for the 2023/24 returns which must be completed and submitted between 1 April 2023 and 30 April 2023.
In addition to the annual returns required, if a company purchases a residential property with a value of more than £500k a return will need to be submitted within 30 days of completion.
1 April 2022: A new valuation date
For the completion of the 2023/24 ATED Return, a new valuation date of the 1 April 2022 is used.
With house prices having increased significantly since 2017, more properties will come within the scope of the ATED charge. Therefore, companies will need to obtain an open market value of their existing residential properties as of 1 April 2022. This value will then apply to ATED returns for the next five chargeable periods starting from 2023/24 ATED Returns.
Penalties will be charged for failure to meet the filing deadlines.