The annual tax on enveloped dwellings (ATED) for 2018 to 2019 will increase by 3% from 1 April 2018.

 The ATED charges for the 2018 to 2019 chargeable period are increased in line with the September 2017 Consumer Prices Index (CPI) rate of inflation, which was 3%.

The table below shows the annual chargeable amounts:

Property value                                Annual chargeable amount

                                                       2017/18                      2018/19

£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

The returns for 2018/2019 need to be filed online from 1 April 2018, and the old forms will be withdrawn from 31 March 2018.

HMRC notes: ‘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. However, agents are being encouraged to register now so they are able to file the returns.’

Go to ATED online for more information.

Article from ACCA In Practice