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The new ATED return (previously called the Annual Residential Property Tax (ARPT)

The ATED on-line return has now been issued in draft form by HMRC.  As I’m sure you recall, this was first called the Annual Residential Property Tax (ARPT) but the terminology has changed through the legislative process. 

The return may be subject to change but it gives you an idea of the information HMRC will require.  You will also note that even if a residential dwelling is covered by one of the reliefs (for example, the property is let to a third party on commercial terms) that a return will still need to be filed to claim that relief.  HMRC expect to publish a finalised version of the form by the end of July. 

The first return will be due for filing by 1 October.  HMRC have clarified that payment will not be required until 31 October 2013. For all future years, both the return and payment will be due by 30 April. 

Please note that for a dwelling which falls into the ATED regime for the first time, the return and payment will be due within 30 days where purchased or 90 days where the dwelling is new built.  Also, late returns and payments may be subject to interest charges and penalties. 

You may also be interested to learn that HMRC are offering a pre-return banding check for properties which are valued close to any of the band thresholds.  This is available for properties within 10% of any of the bandings and HMRC will confirm they agree to which banding is proposed.  This may be helpful if there is any doubt as to which banding the property may fall into, for example, the valuations you have received from a professional valuer may vary.  In addition, even though a professional valuation will normally be accepted, HMRC do reserve the right to enquire into ATED returns and challenge any valuations where they consider that there is a risk the return or valuation may be incorrect.   The property owners will need to consider whether it is worth agreeing the valuation banding with HMRC for the avoidance of doubt.

Please do let me know if you require any further advice in this area or require assistance with the on-line returns in due course.



Date: 16th July, 2013
Author: Liz Cuthbertson


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