Taxpayers sometimes feel that no sooner have they dealt with one annual tax return than it is time for the next one. That feeling may be particularly pronounced as the 30 April deadline for submitting the Annual Tax on Enveloped Dwellings (ATED) form for the year beginning 1 April 2014 draws near. This is because the filing date last year (the first year of operation of the tax) was 1 October, for that year only, so there is only a seven-month gap between the two returns.
The ATED is charged on residential properties in the UK with a value in excess of £2 million that are held by companies or certain other vehicles with a corporate element. The £2 million threshold (and the higher bands at which the different rates of tax apply) will be unchanged until 1 April 2017, but the tax charges will rise for the year beginning on 1 April 2014 in line with the consumer prices index.
HMRC has recently issued a revised return form, but this does not require any additional details regarding the property or the owning entity beyond those included in the first form last year. In cases where property has recently been acquired and an ATED return will be completed for the first time, taxpayers should start to assemble the necessary information.
HMRC has also issued revised guidance on using ATED reference numbers when making payments of the tax, in order to ensure that they are correctly credited to the taxpayer’s account.
For further information please speak to your usual contact at Moore Stephens or see our factsheet here.
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