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When you are submitting your ATED, there are a few things that you need to keep in mind in order to guarantee that the filing process goes smoothly.
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Dwelling Existing on 01 April 2023
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Newly Acquired Dwelling after
1st April 2023
30 Days
From the Date of Acquisition
Newly Constructed Dwelling after
1st April 2023
90 Days
From
( whichever is earlier )
Landlord
We dealt with a client who owned a residential property portfolio worth over £10 million, with three properties subject to the Annual Tax on Enveloped Dwellings (ATED).
The client was uncertain about the ATED compliance requirements and expressed concern regarding potential penalties and interest charges.
To assist the client, we conducted a comprehensive review of their property portfolio and closely collaborated with them to identify the properties that were subject to ATED and their corresponding liability.
As a result of our proactive approach, the client was able to avoid penalties and minimise their tax liability.
Landlord
In an ATED matter, we handled a client's disagreement with HM Revenue and Customs (HMRC). They received a notice stating that their property was liable for ATED, but the client believed the property was exempt from the tax.
Upon reviewing the case, we provided guidance on the relevant legislation and case law to support the client's position. We then collaborated with HMRC to provide the necessary evidence and arguments to support our client's claim for exemption.
We were successful in securing an exemption for the client's property, resulting in significant tax savings. We helped the client to avoid a tax liability of over £500,000 and were delighted to achieve this positive outcome.
Landlord
Our firm was retained by a client who had recently acquired a high-value residential property subject to ATED and unaware about it.
We conducted a comprehensive review of the property and identified that it had been misclassified for ATED purposes, resulting in a higher tax liability. Collaborating with the client and their legal advisors, we challenged the classification and obtained a reduction in their ATED liability.
Leveraging our expertise in ATED legislation and our experience in dealing with HMRC, we successfully resolved the issue. Our efforts resulted in significant savings for the client, with over £200,000 in tax liability avoided, and they were satisfied with the outcome of our work.
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At UKPA, it is done by a team of people evolved from different walks of life. Trained and experienced in property and real estate tax, accounting and compliance matters, most of them are qualified as Chartered Accountants, Chartered Tax Advisers or Chartered Financial Analyst.
Yes, you may be eligible for a refund of any unused portion of the ATED charge if you sell your property before the end of the chargeable period.
Seeking the advice of a tax professional with experience in ATED compliance and filing of the ATED return can help ensure compliance and avoid any penalties or interest charges.
If a trust is holding the legal title of the property on behalf of an individual who actually owns the beneficial interest in the house, then the trust doesn't own the beneficial interest in the house even though it owns the legal title. As a result, the trust is not required to submit tax returns because it doesn't meet the ownership condition.
As the relevant day is later than the first day of the chargeable period, the amount due is the ‘relevant faction’ of the full amount.
182/365 X £26,050 = £13,025
The property was not marketed to the public through an independent agent and is not managed by an independent agent. This would suggest that the rental business is not carried out on a commercial basis. So, the property rental activity cannot be considered as a ‘Qualifying property rental business’ for ATED relief.
Yes, if you disagree with an ATED decision made by HMRC, you can appeal within 30 days of the decision.
For the purpose of the ownership condition, it is immaterial whether the company, partnership or collective investment scheme is incorporate or resident in the United Kingdom.
Hence, your company is subject to ATED provision assuming the value per property exceeds the threshold limit.
The company is jointly and severally liable for ATED for the band appropriate to a £10 million valuation and not just for its 10% proportion.
If the value of your property changes during the year, you may need to file an amended ATED return and pay any additional tax due or claim a refund for overpaid tax.
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UK Property Accountants is a leading firm of chartered certified accountants and chartered tax advisers specialising in the property and real estate sector with an office in London.
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