This is an annual tax on high value UK residential property. It is payable on single dwelling property with a value of £500,001 or more where that property is owned by a non natural person e.g. a company, partnership or unit trust. There are reliefs available when the property is involved in a business (e.g. commecial letting or where it is part of a redevelopment) providing the property is not inhabited by anyone connected to the ultimate beneficial owner. There are many other reliefs which we can advise on, for example farmers, charities or corporate trustees may own the dwelling and not be liable to an ATED charge.
Importantly, since the introduction of ATED, owning property personally where the owner intends to use it as their main residence (with some Inheritance Tax planning) is often a simpler and cheaper option than keeping property in a structure. A bare trust or nominee company may be used to buy the property for anonymity.
We can advise on which property holding structure is appropriate to your individual circumstances and offer guidance on restructuring if necessary. If an offshore company is the best route to follow we can advise on calculating the tax owed relating to ATED as well as submitting ATED returns to HMRC on our clients’ behalf.
Contact us here for more information.
The ATED annual charge for 2016/17 as follows:
|Taxable value of interest in property
£500,001 – £1,000,000
|Annual Chargeable Amount
|£1,000,001 – £2,000,000||£7,000|
|£2,000,001 – £5,000,000||£23,350|
|£5,000,001 – £10,000,000||£54,450|
|£10,000,001 – £20,000,000||£109,050|
|£20,000,001 +||£218,200 each year|
ATED Returns and Payment
Normally you need to submit your return:
- by 30 April if your property is within the scope of ATED on 1 April
- within 30 days of acquisition if your property comes within the scope of ATED after 1 April
- for a newly built property within 90 days of the earliest of the date your property becomes a dwelling for Council Tax purposes or the date it’s first occupied.
Contact us here to receive our quote to complete your ATED return.