ATED Reminder – Deadline 30/4/24

Annual Tax on Enveloped Dwellings (ATED) is an annual tax charge payable by companies, partnerships (with at least one corporate partner) and certain collective investment schemes that own UK Residential properties exceeding £500,000.

The annual chargeable period starts on 1 April each year and both a return should be submitted online to HMRC and any tax paid within one month of the start of the chargeable period to avoid hefty penalties and interest.

Valuation of property

The ATED charge is based on the taxable value of the property. Properties are revalued for ATED purposes every five years. The last revaluation date was 1 April 2022, and it is this value, or if acquired after 1 April 2022 the properties cost, that will determine whether the properties fall within the scope of ATED for the 2024/25 period.

Reliefs available

There are various ATED reliefs available, such as for property rental businesses and property developers and farmhouses occupied by a farm worker. The rules for claiming the relief should be checked closely as occupation by a non-qualifying individual may deny the relief being available. Where a relief applies it must be claimed on a relief declaration return which must be submitted to HMRC by 30 April 2024.

Get In Touch

For more information or advice on ATED, contact your local Whitings office today.

Disclaimer - All information in this post was correct at time of writing.