The Annual Tax on Enveloped Dwellings (ATED) is payable by certain Non-Natural Persons (NNPs) that own interests in dwellings valued at more than £500,000. These provisions affect certain companies, partnerships with company members and managers of collective investment schemes described in the legislation as NNPs.

There is no ATED or ATED-related Capital Gains Tax payable if an individual owns a property directly, rather than through a company. There are also reliefs if a property is used for commercial purposes.

The chargeable amounts for the 2023-24 tax year have just been published.

From 1 April 2023, ATED is chargeable on property valued at:

• More than £500,000 but not more than £1 million – £4,150
• More than £1 million but not more than £2 million – £8,450
• More than £2 million but not more than £5 million – £28,650
• More than £5 million but not more than £10 million – £67,050
• More than £10 million but not more than £20 million – £134,550
• More than £20 million – £269,450

If the relevant property was within the scope of ATED on 1 April 2023, both the return and payment are due by 30 April 2023 for the ATED period 1 April 2023 to 31 March 2024.

There can be penalties for late filings, late payment or for an inaccurate return. Taxpayers can appeal a decision of HMRC, for example, against a penalty or determination. Appellants have 30 days from the date of the decision to write and tell HMRC the grounds on which they are appealing. HMRC's guidance has recently been updated with a correction to the contact details for making an appeal.

Source: New feed