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Understanding the new rules from 1 April 2018 for Annual Tax on Enveloped Dwellings
(broadly speaking, residential property worth £500k or more owned by Corporate Entities)

If you are affected by ATED the clock is now ticking in the countdown to the new reporting service that needs to be used.

What is changing?

For 2018/2019 returns need to be filed online from 1 April 2018 and the old forms will be withdrawn from 31 March 2018.

In the past, where the ATED online service was not used, the ATED return could be filed by post using the old ATED online return form or, where appropriate, an old online Relief Declaration Return form.

However, HMRC made it clear that these forms will be decommissioned sometime after April 2017 and it has now announced that from 1 April 2018 all ATED forms must be submitted using the new ATED digital service. The old online forms will be withdrawn on 31 March 2018.

HMRC has said that ‘taxpayers can prepare for the annual reporting period and appoint their agent if they haven’t already done so but should note that they will not be able to submit a return for the 2018/19 chargeable period until 1 April 2018′.

2018/2019 returns also see charges increase by 3%. The charges are:

Property value                                  Annual chargeable amount

2017 to 2018             2018 to 2019

£500,001 to £1,000,000                  £3,500                        £3,600

£1,000,001 to £2,000,000               £7,050                        £7,250

£2,000,001 to £5,000,000               £23,550                      £24,250

£5,000,001 to £10,000,000             £54,950                      £56,550

£10,000,001 to £20,000,000          £110,100                   £113,400

£20,000,0001 and over                   £220,350                   £226,950

Further information/links

To register for the ATED digital service follow this link.

ACCA’s guidance on ATED and the new digital service

ACCA’s guidance on the Autumn Budget 2017 increases to ATED

For technical guidance from HMRC on the ATED return follow this link.

Article from ACCA In Practice