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HMRC sends nudge letters to uncover  ATED underpaid | accountingweb
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HMRC sends nudge emails to root out underpaid ATED

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HMRC’s email campaign to companies that have submitted annual tax on enveloped dwellings returns since 2018, seeks to encourage more accurate valuations of properties within a corporate wrapper.

10th Mar 2023
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This is a revaluation year for reporting charges for the Annual Tax on Enveloped Dwellings (ATED), and HMRC has launched a campaign focusing on possible ATED return discrepancies.

ATED imposes a tax charge where UK residential property valued at over £500,000 is held within a corporate wrapper (or “envelope”).  Most commonly, this will be where the property is owned by a company, but partnerships with corporate partners and collective investment schemes such as unit trusts may also be in scope. In this article I will only refer to companies. 

How does ATED work?

ATED applies to UK “dwellings”, the definition of which broadly follows that for Stamp Duty Land Tax (see SDLTM09525). This covers residential properties, including land associated with them and buildings being converted for residential use. Properties such as hotels, halls of residence and guesthouses are exempt. Further information is available in HMRC’s technical guidance.

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Replies (2)

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By Hugo Fair
11th Mar 2023 12:27

"In advance of the 30 April 2023 deadline, affected companies need to consider the value at 1 April 2022 of all UK residential properties in which they will hold an interest at 1 April 2023" ... should really read
... "In advance of the 30 April 2023 deadline, affected companies need to consider the value at 1 April 2022 of *each* UK residential property in which they will hold an interest at 1 April 2023"?

Thanks (1)
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By norstar
13th Mar 2023 14:16

Can't see any reference to unincorporated associations in the ATED guidance. Any input on whether ATED would apply? Not technically a charity, but is a not for profit social association run by committee.

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