»Ê¹ÚÌåÓýapp

In broad terms, liability to ATED arises for any period from 1 April 2013 onwards where�

• a company (including a body corporate, but not including certain public bodies e.g. the British Museum, nor a corporation sole) or
• a partnership which includes a company as a member of the partnership, or
• a collective investment scheme

has a ‘single-dwelling interest� in a dwelling which at 1 April 2012 or on the date of acquisition (if later) was worth more than:

• £2,000,000- for the charge that applies for the years 2013-14 to 2014-15
• £1,000,000 - for the charge that applies for the year 2015-16
• £500,000 - for the change that applies for 2016-17 and later years.

Dwellings are due to be revalued for ATED purposes every 5 years from 1 April 2012. A ‘dwelling� includes the garden or grounds that go with the dwelling.

»Ê¹ÚÌåÓýapp amount of ATED charged depends on the valuation band into which the dwelling falls. »Ê¹ÚÌåÓýappre are four bands. For the first year of ATED to 31 March 2014 the chargeable amounts range from £15,000, where the value of the dwelling is up to £5 million, to £140,000, where the value exceeds £20 million. »Ê¹ÚÌåÓýapp chargeable amounts (but not the thresholds of the bands) increase annually by reference to the consumer prices index (CPI), however the ATED valuation band in which a dwelling falls does not affect liability to capital gains tax on disposal of the dwelling. »Ê¹ÚÌåÓýapp capital gains tax charge arises simply where ATED has been chargeable in any amount providing the sale proceeds are greater than the threshold amount.

Where a person holds an interest in more than one dwelling - for instance, if they own a block of flats - or where their interest comprises a dwelling and non-residential land, their interest is apportioned for ATED purposes and each interest in a single dwelling is treated as a separate chargeable interest. »Ê¹ÚÌåÓýapp charge to ATED (and any reliefs available) applies by reference to each separate interest, called a ‘single-dwelling interestâ€�.

ATED is chargeable for any day (from 1 April 2013) when the value of the ‘single-dwelling interest� exceeds the relevant amount for the year. But days are not chargeable if any of the reliefs from ATED apply. If, for example, a company has a ‘single-dwelling interest� for the whole of the year to 31 March 2014 and 200 of the 365 days in the year are ‘relievable days� under any of the ATED reliefs, the company will be charged 165/365 of the annual chargeable amount for that ‘single-dwelling interest�.

»Ê¹ÚÌåÓýapp main ATED reliefs are broadly where the property is â€�

• in use for the purposes of a property rental business run commercially with a view to profit (subject to certain exceptions, for example, where the property is occupied by a person connected with the landlord);
• held as trading stock of a property development or trading business (again, subject to exceptions);
• open to the public for at least 28 days a year as part of a trade carried on commercially with a view to profit;
• repossessed by a mortgage lender;
• a farmhouse, subject to meeting various conditions;
• held by a charity for its charitable purposes, subject to meeting various conditions;
• held by a registered social housing provider for qualifying purposes.