Annual Tax on Enveloped Dwellings (ATED) return
Do you own residential property through a limited company, a partnership with a company member or a collective investment scheme?
If you haven’t registered to use HMRCs online service, you have until the 1 April 2022 to register. The ATED period is 1 April 2022 to 31 March 2023, where you own a residential property on 1 April 2022 that is contained with a limited company, returns for that period must be filed by 30 April 2022. You can begin populating an online ATED return for 2022 to 2023 from around mid-March, but can’t submit it before 1 April.
This applies to residential properties (dwellings) within the company with a taxable value of over £500k. The taxable value is its value at 1 April 2022, or if acquired after, its cost. This value applies to each individual property and not the value of the portfolio as a whole.
If the value of the property is within 10% of one of the value bands you can request a pre-banding check from HMRC to get a determination as to whether the property will be subject to the charge.
There are exemptions and reliefs. Exemptions mean you won’t need to register the property and so there is no requirement to complete a return. Reliefs need to be applied for so, even if a full relief applies and no charge will be payable, you still need to register and complete a return.