ATED threshold drop sparks admin easement

HMRC have launched plans to reduce the administrative burden for businesses subject to the annual tax on enveloped dwellings (ATED).

A new consultation document by the department comes in light of the reduction in the ATED threshold and proposes two options.

The first would retain the current filing date while allowing taxpayers who are eligible to claim a relief for more than one property and do not have an ATED liability to submit a supplementary return after the end of the chargeable period.

Firms claiming the same relief for more than one property would have to submit a single return in respect of the properties by, for example, 30 April in the chargeable period, to confirm their continued entitlement to a relief that reduces their ATED liability to nil.

The Revenue’s intention is to remove the need to submit a separate return for each property within the charge at the start of the chargeable period – which would provide additional time for taxpayers to establish the correct valuation date at which a property comes within the ATED charge.

No return would be required until the end a chargeable period when a relievable property is acquired or disposed of during the period.

The second option mooted by the taxman would introduce a “status” regime. Taxpayer businesses entitled to claim a relief that reduces their ATED liability to nil could apply to HMRC for “exempt” status. They would be required to submit a return annually but have to confirm their status at various intervals.

Comments on the proposals should be sent to the Revenue by email no later than 16 September.

Issue: 4462 / Categories: News , ATED