If our corporate clients own residential properties which are each worth over £500,000, we will check whether the company has completed an ATED return, or made an ATED relief declaration for 2019/20. This is due by 30 April 2019. If full relief is not claimed for the year an ATED charge may also be payable by 30 April 2019.
There are three things to check before completing the ATED return:
- Property valuation – for the years 2018/19 to 2023/24 the ATED charge is based on the open market value of the property at 1 April 2017, or as at the purchase date if that is later.
- Banding – the ATED charge is levied according to the valuation band the property falls into. We can ask HMRC to complete a pre-return banding check for a property if we believe its value lies within 10% of an ATED band threshold, but it will take HMRC some time to respond to this request.
- Correct year – the tax is payable by 30 April within the chargeable year, so make sure the right amount is paid for the right year. The 2019/20 charge ranges from £3,650 to £232,350.
ATED returns are generally submitted online through the government gateway. We can submit ATED returns online for our clients, but we must first register as an agent with the online ATED service. Once registered we can add our clients to our ATED account, but each client must then appoint us as their agent when they receive a unique authorisation number.
Written by the Tax Advice Network