Companies owning residential property – reporting deadline approaches, do you need to take action?

Date posted: 7th Mar 2023

Please note, the filing deadline is 30th April 2023

Annual Tax on Enveloped Dwellings (“ATED”) has a mandatory filing requirement even if no ATED charge arises due to one of the reliefs being available.

Please review your property portfolio ahead of the filing deadline and consider the following:

The ATED rules impose an annual charge where UK residential property, valued at more than £500,000, is owned by a Non-Natural Person (“NNP”). An NNP includes both UK and non-resident companies as well as certain other corporate entities. The ATED charge is payable based on the value of each individual property owned by the NNP.

The value of a property already owned by an NNP is the open market value of the property at five yearly intervals. The 23/24 reporting year encompasses the latest five year anniversary of 1 April 2022, thus for this period properties should be revalued as at 1 April 2022. Since property prices have, on the whole, seen a significant increase over the five years prior to 1 April 2022 it is likely that properties previously not reportable will now fall into the ATED ‘net’.

ATED returns are submitted in April each year, in advance of the following year ended 31 March.  So, for the year to 31 March 2024, ATED returns and any ATED charge, must be submitted and paid over to HMRC by 30 April 2023 for any properties held by the NNP at the start of the tax year, 1 April 2023. An ATED return must be made for each property for which the ATED charge is payable, thus an NNP may have to submit several returns.

Changes to your property portfolio during the year to 31 March 2024 should also be considered in the light of the ATED rules as follows:

If your NNP acquires a UK dwelling during the year, worth more than £500,000, or incurs expenditure on a property it already owns, which results in its value increasing above £500,000, these properties will also be caught by the ATED rules; ATED returns and partial ATED charges can apply and it is likely a return will be required within 30 days of acquisition. The submission date can be extended if an existing property’s value increases above the aforementioned threshold.

Similarly, if your NNP disposes of a property that was the subject of an ATED charge, an amended return will be required during the year to reclaim part of the ATED charge already paid.

There are several reliefs available that can eliminate or reduce the ATED charge. If a relief is available it must be claimed via an online submission within the same timescales as the ATED return.

In summary, all companies owning residential property worth more than £500k must submit an ATED return or a claim for relief.

If you have any queries about reporting the ATED charge, the new valuation date, claiming reliefs or any other aspect please contact us here.


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