UK and International Tax news

Updated HMRC Guidance on ATED

Friday 24th April 2015

HMRC has recently updated its guidance on the Annual Tax on Enveloped Dwellings and has added information on the increased charges from 1 April 2015 and filing obligations.

The annual chargeable amounts for ATED are generally increased each year in line with the Consumer Price Index but for properties valued at more than £2m, the increases for 2015/16 are much greater with 50% plus inflation being added to the 2014/15 charges, as follows:

Annual Chargeable Amount                 Taxable Value Of Property Interest

£23,350                                             More than £2m but not more than £5m

£54,450                                             More than £5m but not more than £10m

£109,050                                           More than £10m but not more than £20m

£218,200                                           More than £20m

Indexation will be reapplied to the annual charges from 2016/17 for properties valued at more than £2m.

A new band has come into effect for 2015/16 for properties with a value greater than £1m but not more than £2m.  The new annual charge for this band is £7,000.

There is a transitional rule for non natural persons falling into the £1m to £2m category for which returns will be due by 1 October 2015 and payment by 31 October 2015, instead of the normal payment and filing due date of 30 April 2015.

From 1 April 2016, a further band will come into effect for properties with a value greater than £500,000 but not more than £1m, with an annual charge of £3,500.

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