Read our detailed ATED guide here.
For the ATED year 1 April 2023 – 31 March 2024, there is a new valuation a date of 1 April 2022 and if your company owns UK residential property with a value over £500,000 at 1 April 2022, or at the acquisition date if this is later, then it is likely that you will need to submit an ATED return for the 2023/24 tax year by 30 April 2023.
Any residential property interests held by a relevant entity at 1 April 2023 worth more than £500k at the new valuation date of 1 April 2022 (or the acquisition date if acquired later than that) will now fall within the regime, and have to file a return with HM Revenue & Customs (HMRC) by 30 April in the relevant year, or 30 days from the date of acquisition if acquired in a year (although in some exceptional cases this can be 90 days).
As a result of the new valuation date of 1 April 2022, companies and partnerships with limited company partners should therefore consider the valuations at 1 April 2022 of any residential properties held, and consider arranging a formal valuation of any residential properties owned by a relevant entity where you consider the value at 1 April 2022 may be sufficiently close to the £500,000 threshold. Clearly, the residential property market in Cornwall has changed significantly since the previous valuation date of 1 April 2017 and therefore values at 1 April 2022 will likely be significantly different in many cases.
Companies should therefore now start to think about whether they may potentially fall within the ATED regime for the period 1 April 2023 to 31 March 2024, to ensure they have sufficient time to obtain formal valuations.
If you think this might affect your company (or partnership with partners that are limited companies), please do not hesitate to contact us.