What is it? ATED is an annual tax payable, mainly by companies who own UK residential property** valued at more than £500,000 (for any single property).
Do I need to file a return? If you are a company or a partnership or trust who jointly own a UK residential property** with a company, and the value of any property is more than £500,000, you will need to complete an ATED return annually.
When do I need to file a return? Returns must be submitted in advance and between 1st and 30th April in any chargeable period.
Returns for the 2024-25 tax year must be submitted on or after 1 April 2024 and any tax due must be declared and paid by the 30 April 2024.
Additionally, if you purchase a residential property already under the ATED scheme, you will need to file a return within 30 days of completion.
How is the value calculated? HMRC state that “You must revalue your property every 5 years in line with ATED legislation. The 2023 to 2024 chargeable period is a revaluation year.
If you acquired a property:
- on or before 1 April 2022 — use 1 April 2022 as the revaluation date.
- after 1 April 2022 — use the date you acquired it as the valuation date.
Can I claim any relief? There are reliefs and exemptions which may mean you do not have any tax to pay. You will still however, need to submit an ATED return.
There are reliefs available if the property is:
- let to a third party on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner.
Note: In this instance “commercial” means you are charging and receiving a market rent for your let property.
- open to the public for at least 28 days a year.
- being developed for resale by a property developer.
- owned by a property trader as the stock of the business for the sole purpose of resale.
- repossessed by a financial institution as a result of its business of lending money
acquired under a regulated home reversion plan. - being used by a trading business to provide living accommodation to certain qualifying employees.
- a farmhouse occupied by a farm worker or a former long-serving farm worker
owned by a registered provider of social housing or a qualifying housing co-operative.
**Is any property exempt? HMRC use the term “dwelling” when referring to the tax. Your property is considered a dwelling if all or part of it is currently used, or could be used, as a residence. Some properties, for example, hotels, guest houses, boarding school accommodation, hospitals, student halls of residence, military accommodation, care homes and prisons are not classed as dwellings.
