The Annual Tax on Enveloped Dwellings (ATED), the new name for what was formerly known as the Annual Residential Property Tax, came into force on 1 April 2013. This was part of a package of measures introduced in Budget 2012 to tackle perceived avoidance of Stamp Duty Land Tax when companies (used as ‘envelopes’) bought expensive (>£2m) UK residential property.
The Finance Bill includes legislation introducing the ATED and the new rules on Capital Gains Tax (CGT) on enveloped structures. The Government has now tabled amendments to the ATED clauses, which, broadly, make changes in two particular areas:
The first ATED return is due by 1 October (even where an exemption applies) and payment by 31 October 2013.