This Content Was Last Updated on November 5, 2015 by Jessica Garbett
From 1 April 2015 the annual charges for the annual tax on enveloped dwellings (ATED) will be increased by 50% above inflation (Consumer Prices Index).
The measure ensures that non-natural persons holding residential property in corporate and other ‘envelopes’ and not using them for a commercial purpose pay a fair share of tax. This improves the fairness of the way property is taxed.
Simplify the administration of ATED for businesses
Legislation will be introduced in Finance Bill 2015 to introduce a new type of return, a ‘relief declaration return’, for those persons holding properties eligible for a relief from ATED. For each type of relief being claimed a relief declaration return must be filed in respect of one or more properties held for that chargeable period. No details will be required of the individual properties eligible for that relief.
A separate return will be required where a property is acquired during the year that qualifies for a different type of relief. The return will not require valuation details for relief properties. A return will be required, as now, in respect of any property which ceases to qualify for a relief, i.e. where ATED is due.
The overall result is that businesses which hold properties eligible for a relief will generally only be required to deliver one relief declaration return a year for all properties covered by a particular relief instead of, as now, multiple detailed returns. This offers a significant reduction in the administrative burden.
Article by ACCA In Practice