UK: Weekly Tax Update – Monday 2 September 2013

Last Updated: 10 September 2013
Article by Smith & Williamson


1.1 ATED forms

On 28 August HMRC updated the ATED forms following feedback they have received. Unfortunately the new form does not seem to have dealt with all of the practical difficulties previously highlighted to them. Nevertheless the following points may be of interest:

  • The help icon for agent authorisation has the following text

    Agent authorisation

    Agents acting on behalf of a client in relation to Annual Tax on Enveloped Dwellings (ATED) and who wish to exchange and disclose information with HM Revenue & Customs (HMRC) must make sure HMRC has received their client's authority to do so, otherwise HMRC will be unable to enter into any correspondence with the agent. You should ensure that there is a clear and express authorisation from your client. This can be supplied in electronic format (via email or in the return) or by letter.

    Agent authorisation can be sent to:

    ATED Processing Team
    3rd Floor
    Crown House
    Birch Street
    West Midlands
    WV1 4JX

    or sent by email to -

    Agents who have submitted form 64-8 to HMRC for other tax matters will not be able to rely on this as it does not cover ATED.

    If agents submit the return on behalf of a chargeable person who is their client and they tick the 'I have authorised my agent' box, authorisation by the chargeable person must have been sent separately to HMRC.

    One way for agents to be authorised is for the chargeable person to complete the ATED return and send it to HMRC after ticking the appropriate box.

    Please note: The ATED authority is limited to correspondence only.
  • The form also has the following text:

    If you have declared £0 liability above, enter the relevant relief code that applies below. Click on the help icon (?) to see a list of the reasons and codes.

    Only one return can be submitted per relief claimed. However if you're claiming the same relief for more than one address you can send the additional details to HMRC via the additional email to the address shown in the 'Property' section of this form.

    Where you are claiming the same relief for more than one address HMRC will accept a single return. However, you should send the same details for each property as shown on the return using the additional information email address shown in the 'Property' section of this form.

    The details you must include are the property title number (if any), address and postcode, date of acquisition, value at acquisition, actual value of dwelling, date of valuation and any relevant Pre-Return Banding Check (PRBC) reference. Please note that the valuation of the property must be in pounds sterling. A formal valuation (for example from an estate agent, surveyor or other professional valuation) is not required where a relief is being claimed but you should provide a best judgement estimate.

    Please only send the information using a PDF file.
  • The form contains the following text in the help icon for the box for the date of acquisition:

    Enter the exact date, for example 30 April 2013, if you acquired the property (dwelling) during the period covered by the return. If the property (dwelling) was acquired prior to the period covered by the return, you only need to enter the year of acquisition.

A test entry using a date of acquisition as "2011" was not accepted, so it seems as though an actual date of acquisition is always required.

Some points previously referred to HMRC and not dealt with in this update include:

  • Why is there a need to include an "acquisition value" in all cases?
  • There seems to be some confusion concerning the need to submit valuations for all properties included on a submission where a particular relief is due.
  • It is not possible to save a partially completed form.

As a further point the Pre Return Banding Check section of the HMRC website contains the following text:

You can ask HMRC to do a PRBC in order to determine whether the property is below the £2 million or less threshold, or to confirm into which band your property falls where a property is valued at an amount close to one of the band thresholds. The PRBC is available to customers who meet the following:

  • you are not due a relief that will reduce the ATED charge to nil;
  • the value you have placed on the property falls within 10 per cent of a banding threshold.

It is uncertain whether this text permits the submission of a PRBC request where it is thought a relief is due but where there may be some doubt. This seems odd bearing in mind it is necessary to submit a return in order to claim a relief, whether this would result in an ATED liability or not.

1.2 ATED compliance procedures and claims for relief

There are two main ways to claim relief from ATED (and if a relief applies it must be claimed). These are via a claim for interim relief (FA13 s100) and a claim arising from an adjustment of an amount chargeable (FA13 s106).

A claim for interim relief must be made before the end of the chargeable period. HMRC's ATED technical guidance at para 7.5 indicates it is not possible to make a claim to interim relief where the filing date for the return is after the end of the chargeable period. Considering the legislation and the guidance it is apparent no claim for an ATED relief is possible under interim relief for an ATED return submitted late.

FA13 Sch33 para 3(4) and para 47.7 of HMRC's ATED guidance indicates there is a period of three months after the date of a late return in which to make an amendment. However the date for the liability to crystallise will have been the due date for payment on the basis that a return was not submitted in the required timescale and the claim for relief under FA13 s100 or s106 is no longer possible. In addition FA13 Sch33 para 30 sets out the terms whereby HMRC are not liable to give effect to a claim and the circumstances include a mistake in a claim or failing to make a claim, or where the claimant could have sought relief by taking steps in a period that has expired and they ought reasonably to have known before the end of that period that such relief was available.

A claim for relief made as part of an adjustment of an amount chargeable must be delivered by the end of the chargeable period following that to which the claim relates, so that it would not be possible to claim a relief under this section in a late return.

It is also worth considering the ATED payment implications of whether to submit an amendment of a return (perhaps by claiming relief under FA13 s100 or s106) or a further return under FA13 s160. The latter can only be done (a) where there has been no claim for interim relief and for some reason the amount chargeable is greater than the original amount charged, or (b) where interim relief has been initially claimed and for some reason the amount calculated was lower than it should have been.

By amending the return, the due and payable date remains the same as that applicable to the original return (FA13 s163(1)).

By submitting a further return as a result of FA13 s160, the due and payable date is 30 days after the end of the changeable period, or if the reason for filing a further return is because of an event occurring after the end of the chargeable period (one of the instances where s160 condition two could apply), 30 days after the day of that event (see s163(2) and s160(3)). HMRC's ATED guidance on this at para 49.3 indicates that the due and payable date for a further return will always be 30 April, which does not seem to correspond precisely with the legislation.

1.3 France and tax havens

The Financial Times has reported that France has nominally blacklisted Jersey, Bermuda and the British Virgin Islands as non-cooperative tax havens for not complying with a new criterion enforced by the government and for unsatisfactory compliance with an existing convention with France. The report clarifies that the French Finance Ministry has indicated terms of the blacklist won't apply until 1 January 2014, giving the territories until the end of the year to comply.

The report indicates some surprise in the three territories at the French Government's action. If effective the report indicates the blacklisting will trigger withholding taxes of up to 75% on payments from France.


2.1 Statutory residence test (SRT) – updated guidance

HMRC has reissued the SRT guidance note RDR3, following Royal Assent of Finance Act 2013. A summary of the updates made can be found on pages 7 and 8 of the guidance note.

2.2 Reduction to the lifetime allowance and fixed protection 2014

HMRC has issued updated guidance with a new tool and forms published so that pension scheme members who qualify can apply for fixed protection 2014 of their pension savings lifetime allowance.

From 6 April 2014 the lifetime allowance for tax favoured pension savings reduces from £1.5m to £1.25m with effect from April 2014. If the value of pension savings (including past benefits crystallised) already exceed £1.25m, or are expected to do so by the time they are drawn, it is possible to elect for protection from the pending reduction, called 'Fixed Protection 2014'. The election must be made by 5 April 2014.

For those making the election the £1.5m limit will still apply until such time as the standard lifetime allowance again reaches that level, but with restrictions on future pension savings.

There are proposals for a further type of protection – Individual Protection 2014 – for applications after 5 April 2014 to provide for a personal lifetime allowance related to the value of pension savings at 5 April 2014 (more details to follow).

2.3 Glasgow Commonwealth Games 2014

HMRC has set up a special helpline for specific queries relating to the Commonwealth Games 2014. FA2013 s9 introduced an exclusion from liability for UK income tax for an accredited competitor (who will be non-UK resident in the tax year of the games or the year when the relevant activity is carried out) for any income arising from competing at the Glasgow Commonwealth Games and any activity performed during the games to support or promote those games or any future Commonwealth games.


3.1 Advisory fuel rates

HMRC has published advisory fuel rates that are effective from 1 September 2013.

The rates per mile are as noted below with the rates in force for the previous period given for comparison:

Engine size Petrol LPG
1/6/13 – 31/8/13 From 1/9/13 1/6/13 – 31/8/13 From 1/9/13
1400cc or less 15p 15p 10p 10p
1401cc-2000cc 17p 18p 12p 11p
> 2000cc 25p 26p 18p 16p

Engine size Diesel
1/6/13 – 31/8/13 From 1/9/13
1600cc or less 12p 12p
1601cc-2000cc 14p 15p
> 2000cc 18p 18p


4.1 Agricultural vehicles used for gritting roads and rebated fuel

HMRC published responses to a July consultation on legislation permitting agricultural vehicles used for gritting roads to use rebated fuel and has announced it is progressing legislation to implement this initiative with intended effect from 1 November 2013.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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