ATED – the often forgotten tax

For companies, the preparation and filing of the annual corporation tax return is usually what springs to mind when the word tax is mentioned. However, the Annual Tax on Enveloped Dwellings (‘ATED’) is often forgotten and can catch out companies...

ATED payment problem caused by changing HMRC references

An unheralded effect of the annual tax on enveloped dwellings (ATED) changing to its new online system has just emerged and may cause difficulties for taxpayers paying tax when or before they submit their returns if not handled properly. Remember,...

ATED revaluation means many unhappy returns in 2018-19

The annual tax on enveloped dwellings (ATED) has been with us for five years and the first automatic revaluation is now about to take effect: for 2018/19 ATED on properties already subject to the tax will be charged on the...

De-enveloping properties held in corporate wrappers

We now know that inheritance tax benefits previously associated with the use of corporate structures to hold UK residential property will be removed with effect from 6 April 2017. The new rules treat the interest in the holding entity as...

ATED – annual charge increased for all but lowest band

Although not mentioned in the Chancellors Speech, the Annual Tax on Enveloped Dwellings (‘ATED’) charges that will apply for 2017/18 have been increased slightly from those for 2016/17 for all bands except the lowest band. Somewhat surprisingly, for a tax...

ATED return penalty drastically reduced due to HMRC errors but others may not be so lucky

Chartridge Developments Ltd (Chartridge), [2016] UKFTT 766 (TC), has had penalties for failure to submit its ATED returns on time significantly reduced due to errors on the part of HMRC but other companies may not be so lucky. The case...

ATED net will be cast wider from 1 April

As the tax net is cast ever wider to increase revenues without “increasing taxes”, the annual tax on enveloped dwellings (ATED) is to be extended to properties valued over £500k and up to £1m from 1 April 2016, with an...

Stamp taxes in Draft Finance Bill 2016: everything but the crucial residential property 3% addition

The draft Clauses Released so far The draft 2016 Finance Bill clauses cover most of the stamp tax changes announced at the Autumn Statement.  Unfortunately, the one area not covered is that which is, perhaps, of the widest interest, the...

SDLT and ATED reliefs extended

The Government has announced proposals to extend the scope of reliefs from the higher 15% of stamp duty land tax (SDLT) and the annual tax on enveloped dwellings (ATED) to cover residential property held for the purposes of an Equity...

Anticipating the ATED extension

Following the 2014 Budget the ATED threshold is to be reduced to: £1m (£7k charge on properties £1m to £2m) from 1 April 2015; and £500k (£3.5k charge on properties £500k to £1m) from 1 April 2016. These changes increase...

Non-residents’ CGT on residences could mean the end of PPR elections

The Government’s consultation about taxing non-residents on their gains derived from UK-residential property goes further than simply extending UK CGT to make non-residents taxable on disposals of UK residential property in the same way as UK residents.  The new rules...

Stamp Duty Land Tax on enveloped residential property over £500k

The 15% SDLT rate was extended to acquisitions of residential property worth over £500k completed on or after 20 March 2014 by non-natural persons, i.e. companies, partnerships including companies and collective investment schemes that are subject to ATED. This surprise...

Annual Tax on Enveloped Dwellings (ATED)

ATED amounts 2014/15 The value bands for ATED will remain the same in 2014/15 but the amounts of ATED payable on each band are increased as follows: New ATED bands in 2015/16 and 2016/17 From 1 April 2015 a new...

De-enveloping residential properties – SDLT implications

Until the introduction of the annual tax on enveloped dwellings (ATED) there were tax advantages in having high value residential properties owned by a company rather than personally. Since 6 April 2013 ATED imposes an annual “charge” of between £15,000...