If you have a residential property which is worth more than £500,000 and is held in a company then you will be required to complete an Annual Tax on Residential Dwellings (ATED) form. The deadline is fast approaching with all ATED forms for 2018 to 2019 tax year being due for filing by 30th April 2018.
All ATED forms must be filed online with HMRC through your own or your agents government gateway login and if you have not filed an ATED form online previously you will be required to register for ATED services through your government gateway login.
This year, the valuation date for properties has been reset to 1st April 2017; previously the valuation date was 1st April 2012. Any residential properties which were close to the lower limit threshold of £500,000 at 1st April 2012 may now be caught as result of property value increases over the last five years.
If this is the case then the company will need to pay an ATED charge which starts at £3,600 for 2018/2019 unless the company or the property meets a certain relief type. Reliefs are available for the following company types or dwellings:
- Property rental businesses
- Property developers
- Property traders
- Occupation by certain employees or partners
- Dwellings open to the public
- Financial institutions acquiring dwellings in the course of lending
- Providers of Social housing
For a brief guide on ATED, please use the following link to our guidance on ATED and its background – ATED Brief Guide
For further guidance on ATED please visit: https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance