HMRC has launched an online registration service for annual tax on enveloped dwellings (ATED) for companies, partnerships with a company member and collective investment schemes
Affected parties can now register for the new online ATED service and will be able to submit returns using the system from 1 April 2017.
The service is currently in beta testing and is open to tax advisers and agents, as well as individuals liable to pay ATED, the annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
A new ATED band came into effect on 1 April 2016 for properties valued between £500,000 and £1m. The normal filing and payment date for properties falling into this new band is 30 April 2016. There has also been a rate increase across all ATED price brackets effective 1 April 2017.
Agents can register for the online ATED service and are given a unique authorisation number to give to the client. The client has to register and then confirm appointment of the agent.
Overseas clients can be registered even if they do not have an HMRC unique taxpayer reference (UTR) so long as the client has completed an ATED1 form.
ATED 1 allows HMRC to exchange and disclose information about the property owner with their named agent and to deal with them on matters relating to ATED and ATED-related capital gains tax (CGT) only.
Chargeable amounts for 1 April 2017 to 31 March 2018
| Property value | Annual charge |
| More than £500,000 to £1m | £3,500 |
| More than £1m to £2m | £7,050 |
| More than £2m to £5m | £23,550 |
| More than £5m to £10m | £54,950 |
| More than £10m to £20m | £110,100 |
| More than £20m | £220,350 |
Source: HMRC
Revised HMRC guidance including new ATED rates for 2017/18 and ATED online registration is available here