Annual tax on enveloped dwellings
The deadline of 30th April for the return period 1 April 2015–31 March 2016 has now passed. Readers are reminded that a number of changes were made to the annual tax on enveloped dwellings (ATED) regime from 1 April 2015 and which could affect filing obligations in some cases. Detailed guidance on the ATED is available.
By way of reminder, the ATED is an annual charge that applies where a ‘non-natural person’ (e.g. a company) holds a single residential property valued over £1,000,000 as at 1 April 2012. Prior to 1 April 2015 the threshold was £2,000,000. The threshold is proposed to fall further to £500,000 from 1 April 2016. A number of reliefs from the ATED are available.
From 1 April 2015, the tax threshold of the value of qualifying properties within ATED was reduced from £2,000,000 to £1,000,000 (valued as at 1 April 2012). For properties valued over £1,000,000, which now fall within the scope of the ATED charge for the first time, transitional rules have been introduced which extend the normal 30 April 2015 filing deadline to 1 October 2015. The payment deadline has also been extended to 31 October 2015.
In addition, a Relief Declaration Return (RDR) has been introduced for businesses claiming relief from this tax. For the chargeable period beginning on 1 April 2015, the deadline for filing the RDR will be 1 October 2015.
Where a property is held that is valued over £2,000,000 and no relief is available, the normal 30 April 2015 filing and payment deadline still applies. Late filing penalties and late payment interest will be incurred if the relevant deadline is missed.
