Background Note
3.ATED is an annual tax payable by companies, partnerships with a corporate member, and collective investment vehicles which own UK residential property valued at more than £2 million. At Budget 2014 the government announced that the £2m ATED entry threshold would be lowered to £500,000 to be phased in over 2 years.
4.The amount of tax charged is based on the value of the dwelling as at 1 April 2012, and thereafter each 1 April at intervals of 5 years. Where a dwelling is acquired or disposed of, the valuation date is the date of acquisition/disposal.
5.It was the policy intention that a chargeable person who has an interest that falls within ATED because of its value on, say, 1 April 2017, must file a return for the chargeable period beginning 1 April 2018. This was to provide sufficient time to value a property in 2017 and submit a return by the due date of 30 April 2018.
6.However, the legislation as currently drafted means that the chargeable person would in fact have to value their property on 1 April 2017 and file their return by 30 April 2017, giving them only 30 days in which to do so. This section corrects that anomaly. The changes have effect for chargeable periods beginning on or after 1 April 2015.
