In year ATED filing deadlines: Reminder

Now that the 30 April 2023 Annual Tax on Enveloped Dwellings (ATED) filing deadline has passed, it is important to remember that additional returns may need to be submitted to HMRC during the ATED chargeable period, which runs from 1 April 2023 to 31 March 2024.

The most common events which cause this are explained below, with the respective filing deadlines:

Acquiring a dwelling within an ATED year (1 April to 31 March)

If you acquire a dwelling through a corporate wrapper during an ATED period, which is valued above £500,000 at the date of acquisition, an ATED return and any tax payable will be due within 30 days of acquisition.

No return is required if the property is covered by a relief which has already been returned on a relief declaration for the chargeable period.

Constructing a new dwelling or converting a new dwelling from an existing property

Where a property is either developed or converted from an existing dwelling during an ATED period, which is valued above £500,000 at the valuation date, an ATED return and any tax payable will be due within 90 days of the valuation date.

HMRC determines the valuation date as the earlier of the following:

• The date on which the property comes into existence for council tax, and

• The date on which it is first occupied (usually the completion date).

Again, no return will be required if the property is covered by a relief which has already been returned on a relief declaration for the chargeable period.

Amended Returns

Amendments may be required during the year for a return that has already been submitted:

• If tax increases, for example you become ineligible for a relief part way through the year, a further return needs to be submitted within 30 days of the end of the chargeable period. For the 2023/24 ATED period (1 April 2023 to 31 March 2024), a further return will be required by 30 April 2024.

• If information contained on the return is wrong or you can now claim a relief, an amended return needs to be submitted within 12 months of the end of the chargeable period. For the 2023/24 ATED period (1 April 2023 to 31 March 2024), an amended return will be required by 31 March 2025.

If you would like to discuss your specific situation, contact your local office today.

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