ATED: Annual Tax on Enveloped Dwellings 2023/24

Thank you to Ilaria Evangelista, Tax Assistant at our Ipswich office for the following post…

As you may be aware, the ATED filing window is approaching from the 1 April 2023 to 30 April 2023 for the 2023/24 tax year.

If you have any clients who own any type of property with a market value of £500,000 or more, they will be required to submit an ATED Return.

This year’s ATED Return requires a valuation of residential properties as of the 1^st April 2022. We will therefore be requesting clients provide an updated valuation of all residential properties held.

Please also note that if a client buys, builds or develops a residential property worth £500k or more, then we need to know urgently as returns are required in the reporting year within 30 days (sometimes up to 90 days), depending on circumstances.

There are a number of exemptions from the ATED charge, including the following:

• The property is let on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner.
• The property is developed for resale by a property developer.
• The property is owned by a property trader as the stock of the business for the sole purpose of resale.

If one of the exemptions applies, the relief must be claimed through HMRC’s ATED online service.

Please access the following link for more information:

Annual Tax on Enveloped Dwellings (ATED): At a glance – www.rossmartin.co.uk

If you have any questions please contact @Tom Butterworth, @Ilaria Evangelista or @Greg Warner in the first instance.