Imminent deadline for 2023/24 Annual Tax on enveloped dwellings compliance

2023/24 compliance

For the period 1 April 2023 to 31 March 2024, you must complete the ATED annual compliance filing between 1 April and 30 April 2023. For the upcoming compliance season, the value of the property for ATED purposes is the market value as at 1 April 2022. For the previous five years, the ATED Return has been based on the market value as at 1 April 2017, therefore a revaluation will be needed if your company is already within the ATED regime. You can value the property yourself or obtain a valuation from a professional and in some cases you can ask HMRC for a pre-return banding check. 

The ATED charges for the period 1 April 2023 to 31 March 2024 are as follows:

Acquiring a new property through a corporate structure/envelope

If you acquired property through a corporate structure after 1 April 2022, the value of the property at acquisition (as opposed to the value at 1 April 2022) is used to determine which charge applies for 2023/24. In addition, for the year that you acquire enveloped residential property, all ATED compliance (including payment of the pro-rated ATED charge) should be completed within 30 days of acquisition for that ATED year. For example, if a property is acquired by your company on 1 June 2023, the ATED return and tax should be paid by 30 June 2023. 

Are there any reliefs/exemptions from the ATED charge and filing requirements?

There are several reliefs and exemption from the charge to ATED, including those aimed at properties let on a commercial basis or being developed for sale. While there are various reliefs from the ATED charge, an ATED declaration form is still required to be submitted within the usual timescale in order to claim the relief/exemption.

In some cases, it may be worth considering whether the property is not considered a “dwelling” and thus outside the scope of ATED.

Do you need to submit an ATED relief declaration or return?

Your ATED relief declarations and returns should be submitted using HMRC’s ATED online service, which has been in place since 1 April 2018. You can register for the service in advance, which we recommend to ensure your account is set up in time to meet the deadline. ATED submissions for 2023/24 can only be made via the online system from 1 April 2023.

If you hold or are considering investing in UK residential property valued in excess of £500,000, are unsure as to whether ATED or reliefs/exemptions apply to properties in your situation, or if you think that ATED deadlines may have been missed in the past, please fill out the form below and one of our experts will be in touch to discuss your requirements.