ATED is mainly payable by companies owning UK residential property valued at more than £500,000. The ATED year runs from 1 April, and the return and payment for 2023/24 will be due by 30 April 2023.
Various reliefs and exemptions – in particular, letting the property out on a commercial basis – can mean no ATED is payable.
For 2023/24, the charge starts at £4,150 for properties valued between £500,001 and £1 million, increasing to £269,450 for properties valued over £20 million. Moving up a banding at least doubles the amount of charge.
Property prices have gone up on average 29% for the five years to April 2022, with higher regional increases. Many taxpayers will therefore see their property moving up an ATED band, and they will need to budget for the increased charge. For example, in 2022/23 the charge on a property valued at £1,900,000 was £7,700, but will become £28,650 for 2023/24 if the property is now worth over £2 million.
Property previously valued under £500,000 might now fall into the ATED reporting regime, and owners will not receive any warning from HMRC. Penalties are charged for late filing or payment.
