ATED is an annual tax payable, mainly by companies (but can include partnerships with a corporate partner and collective investment schemes), that own UK residential property valued at more than £500,000 unless relief is claimed.
ATED does not apply to individuals.
Filing deadline
The time frame for submitted your organisation’s ATED return is very short. An ATED return must be filed in advance on or after 1 April, for the chargeable period, for example returns for the period 1 April 2024 - 31 March 2025 must be filed between 1 April - 30 April 2024.
When you purchase a residential property that falls within the ATED regime, the return will need to be prepared and submitted online to HMRC within 30 days.
Taxable Value
The ATED is based on the taxable value of the property, properties are revalued for the purposes of ATED every five years. For the chargeable periods 1 April 2023 to 31 March 2024 to 1 April 2027 to 31 March 2028 the taxable value of the property is the value at 1 April 2022.
Chargeable Value
The current chargeable amounts for the chargeable period 1 April 2024 to 31 March 2025 are:
|
Property value
|
Annual
|
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More than £500k to £1m
|
£4,400
|
|
More than £1m to £2m
|
£9,000
|
|
More than £2m to £5m
|
£30,550
|
|
More than £5m to £10m
|
£71,500
|
|
More than £10m to £20m
|
£143,550
|
|
More than £20m
|
£287,500
|
Reliefs
There are a number of reliefs available which may mean that the charge is reduced. Examples of such reliefs are:
- let to a third party on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner
- open to the public for at least 28 days a year
- being developed for resale by a property developer
- owned by a property trader as the stock of the business for the sole purpose of resale
In these instances you will still need to file a return in order to claim the relief.
Exemptions
If you meet the conditions for an exemption, you do not need to file a return, including:
- charitable companies using the dwelling for charitable purposes.
- public bodies
- bodies established for national purposes
What should I do next?
If you would like to discuss your ATED filing requirements please contact Jess Gray, our Business Tax Advisor, jgray@critchleys.co.uk
Critchleys Clients: If you have specific questions, don't hesitate to get in touch with your Critchleys contact directly.