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The ATED return – deadline approaching…

HMRC have now released the final version of the Annual Tax on Enveloped Dwellings (ATED) return and you need to consider the detail now, as the deadline for its submission (1 October 2013) is fast approaching.

The 1 October deadline does not give property owners much time to consider the preparation of the return.  In particular, where the property in question is close to one of the property bands, consideration needs to be given as to whether to approach HMRC for a pre-banding check.  Which ATED band the property falls into will be decided by its value on 1 April 2012 and this value applies for 5 years (although there are circumstances when new valuations will be required, for example if the property is developed).   A valuation based on best estimate will be acceptable where a relief is claimed but  otherwise, HMRC may challenge a valuation which they do not consider correct so you may need to obtain a formal valuation if you have not already done so.

The bands are as follows:

Property value ATED 2013/14
£2,000,001 - £5,000,000 £15,000
£5,000,001 - £10,000,000 £35,000
£10,000,001 - £20,000,000 £70,000
£20,000,001 and over £140,000

If a property is owned for part of the year or the property moves into or out of the ATED, then the charge is pro-rated. 

As a reminder, an annual ATED return will be required if the following applies:

  • A property is owned which is a dwelling;
  • It is situated in the UK;
  • It is valued at more than £2m on 1 April 2012;
  • It is owned (wholly or partly), by a company (UK or non UK), a partnership where one of the partners is a company, or a collective investment vehicle.

It is important to note that there are reliefs that reduce the ATED completely, BUT these can only be claimed if a return is completed and submitted to HMRC so even if you think they apply you still have to file a return. For further details on the reliefs call us or refer to our previous blog "The new ATED return (previously called the Annual Residential Property Tax (ARPT)".

Although it is an online form, HMRC have confirmed that it will be possible to submit the return in paper format, and the deadline for this will be the same as for the on-line form.  For this first year the deadline is 1 October 2013 for the return to be submitted to HMRC and the payment will be due by 31 October 2013.   For future years, both the return and payment will be due by 30 April. 

Late returns and payment of the ATED will be subject to interest and penalties so do contact us with any queries.



Date: 6th August, 2013
Author: Suzanne Briggs


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