The Annual Tax on Enveloped Dwellings (ATED) will apply to residential properties worth over £500,000 from 1 April 2016, where the property is owned by a company or similar vehicle. According to the Land Registry, the average price of a home in London is over £500,000, so the ATED could apply to a lot of properties.
However, the value to be considered for ATED is that as at 1 April 2012, or when the current owner acquired the property, if later. If you are not sure about the value at 1 April 2012, you can ask HMRC to undertake a value banding check. We can help you with that.
The annual tax starts at £3,500, but there are many reliefs, such as for commercially let properties. Where a relief applies such that no tax is payable, an ATED relief form must be submitted, generally by 30 April each year. We can help you complete and submit all the ATED forms required.