The Annual Tax on Enveloped Dwellings (AETD) is applicable to companies and partnerships with corporate partners which own residential property with a value over £500,000. Properties must be valued every five years, the last valuation date being 1 April 2022 for the 2023/24 return. Other valuation dates can be triggered by an acquisition of a further interest in the property or where there is a disposal of part of the property for at least £40,000.
The charge is applied from 1 April to 31 March, with a filing deadline of 30 April for the year ahead. If a property is acquired during the year, filing is required within 30 days. Newly constructed properties must file within 90 days of first occupation/becoming a dwelling for Council Tax purposes (whichever comes first).
The Stamp Duty Land Tax (SDLT) reliefs disapplying the 15% charge broadly align with ATED reliefs, but only apply if the property continues to satisfy the conditions throughout the following three years. There are also several organisations exempted from the ATED regime.
At EAG Tax we can provide advice with respect to the ATED regime and prepare the annual filing obligations.
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