Annual Tax on Enveloped Dwellings (ATED)

There are a number of changes which will impact the returns for the 2018-2019 period to cover the ATED year which runs from 1 April to 31 March.

Every dwelling owned by a non-natural person (a company, a partnership with a company member, or a collective investment scheme) at 31 March 2017 MUST be revalued at 1 April 2017. Therefore, a property that was valued at say, £400,000 in 2012 may have been outside of the scope until now, however, if the taxable value is more than £500,000 on 1 April 2017, or at acquisition if that was later than 1 April 2017, then it will be subject to ATED.

1 April 2017 brought about the first 5-yearly revaluation date for ATED and this revaluation will be needed for 2018-2019.  There are reliefs and a relief declaration return would be completed where applicable.

The ATED is calculated using a banding system.  The annual chargeable amount for 2018-2019 has also risen to £3,600 (up from £3,500) for dwellings ranging from £500,001 to £1m.

From 1 April 2018, all online ATED returns must be filed using HMRC’s new ATED digital service. The new online service before the 2018-19 filing window opens on 1 April 2018. The online service can be used for both chargeable returns and relief declaration returns.

It’s worth noting that a return must be filed by 30 April for that year if the property was held on 1 April.

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