‍What is ATED?

ATED is a yearly levy imposed on residential properties owned by entities other than individuals, such as corporations, partnerships with corporate members, or collective investment schemes (including unit trusts). 

At what value are properties subject to the ATED charge?

Currently, the charge is levied on properties valued at £500,000 or more. Entities falling under ATED regulations are liable for an annual property tax determined by the property's value.

On what basis is the charge calculated? 

The charge for the fiscal year until 31 March 2024, is calculated based on the property's value as of 1 April 2022, or the acquisition date if later. This will also be the case for the subsequent three years. 

When should valuations be conducted?

Ideally, for residential properties owned prior to 1 April 2022, valuations should have been conducted as close to this date as possible. 

Who can undertake a value assessment for ATED purposes? 

The assessment should reflect the property's open market value. While a formal valuation isn't strictly mandated, engaging a property professional is advisable to ensure a robust and reasonable figure. HMRC guidance specifies that the valuation must be a precise amount rather than a range.

When should the ATED return be submitted for the fiscal year up to 31 March 2025? 

30 April 2024.

Are there exemptions and reliefs from ATED charges?

Many companies will not have to pay the ATED charge, which is a flat annual fee based on the value of the property - for example, properties let wholly to third parties or under construction may be exempt from the charge. However they are still required to file an ATED return, and may incur penalties for late submission.

How should we apply for relief on ATED charges?

Certain exemptions and reliefs are accessible from the ATED charge, including provisions for legitimate property developers or investors leasing to third parties. However, all relief claims must be included in the return, either through a comprehensive ATED return or a simplified form termed a Relief Declaration Return. Online filing for the ATED return will be available starting from 1 April 2024.

‍When should I settle any ATED taxes for the fiscal year until 31 March 2025?

30 April 2024.

What are the applicable charges for the period 1 April 2024 to 31 March 2025?

What are the penalties for late submission of ATED returns?‍

We hope that you have found these simple FAQs useful. If you prefer to speak to a member of our team to discuss your a specific ATED return please email us hello@sanctoras.com