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ATED Relief

Amended Declaration needed?

In April 2017, an ATED Relief Declaration form was submitted in which property development relief was claimed for the chargeable period ended 31 March 2018.

When the property was developed, the intention was to sell the property.  However, due to poor market conditions, the company decided to rent the property instead.  Commercial letting commenced at some point in the chargeable period ended 31 March 2018.

Is there an obligation to submit a further ATED Relief declaration (Property rental relief) & if so, what is the deadline for submitting the further Declaration without incurring late filing penalties?


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21st Mar 2018 16:26

Section 7.3 here suggest that a new RDR needs to be filed and that must be right I think (unless co-incidentally the other lettings RDR is already in place re another rented property):

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to Justin Bryant
22nd Mar 2018 08:07

I think that would only apply if an ATED charge initially arose & then a relief became due in the year - at that point you may submit an interim relief claim (thereby reducing the ATED charge) rather than waiting for the year end.

In my case, I believe Property Development Relief will continue to apply. This is because they acquired the property with the intention that following refurbishment it would be sold. Although they have taken a commercial decision to let the property, the intention is still to sell the property and the property was acquired for the purposes of development.

Should there be a change of intention, for example, they decide to let the property indefinitely & no longer intend to sell it imminently, then Property Development Relief will no longer apply but Property Rental Relief will apply instead. An additional Relief Declaration form would then need to be submitted.

I'm not sure when this additional relief claim would need to be submitted though?

I'm also not sure if an amended relief claim needs to be submitted (and when) if the property is sold in the year.

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