A. This client was right to query this as there are a number of changes which will impact the returns for the 2018-2019 period to cover the ATED year which runs from 1 April to 31 March.
Every dwelling owned by a non-natural person (a company, a partnership with a company member, or a collective investment scheme) at 31 March 2017 MUST be revalued at 1 April 2017. Therefore, a property that was valued at say, £400,000 in 2012 may have been outside of the scope until now, however, if the taxable value is more than £500,000 on 1 April 2017, or at acquisition if that was later than 1 April 2017, then it will be subject to ATED.
1 April 2017 brought about the first 5-yearly revaluation date for ATED and this revaluation will be needed for 2018-2019. There are reliefs and a relief declaration return would be completed where applicable.
The ATED is calculated using a banding system. The annual chargeable amount for 2018-2019 has also risen to £3,600 (up from £3,500) for dwellings ranging from £500,001 to £1m.
From 1 April 2018, all online ATED return must be filed using HMRC’s new ATED digital service. The new online service before the 2018-19 filing window opens on 1 April 2018. The online service can be used for both chargeable returns and relief declaration returns.
Finally, it’s worth noting here that a return must be filed by 30 April (2018 in this example) for that year if the property was held on 1 April.
If you have a tax query, why not contact the Tax Advice Line on 0844 892 2470 to discuss it. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.