Are you ready for Annual Tax on Enveloped Dwellings (ATED) reporting?

20 April 2018

ATED was introduced with effect from 1 April 2013, and for the reporting period starting 1 April 2018 a return will need to be filed by all “non-natural” persons (eg companies) owning UK residential property with a market value of £500,000 or more at 1 April 2017.

Here are some key points to consider:

• The ATED filing window is 1 April 2018 through to 30 April 2018
• There are significant penalties for late filing and late payment
• A market valuation of the enveloped property at 1 April 2017 is required for this year’s return, unless acquired after this date
• If an enveloped property was let for part of the period to 31 March 2018 and was subject to the ATED charge, you may be able to claim a partial repayment
• Properties with a market value of £500,000 and above are now within charge. Have borderline properties been valued?
• A disposal† of a property within the charge will be able to claim a partial repayment.

The ATED rates for 2018/19 are shown below:

† From 6 April 2016 for disposals of properties with a value of £500,000 and above an ATED-related Capital Gains Tax return will need to be filed. (The filing deadline for an ATED-related Capital Gains Tax return is 31 January after the end of the tax year of disposal.)

If you would like any advice or assistance with your ATED returns or ATED-related CGT returns, please contact me.