HMRC: ATED Tax Avoidance Scheme Reference Numbers Must Be Disclosed

• HMRC has introduced a form for ATED avoidance scheme reference number disclosure.
• The AAG4(ATED) form is available in both postal and online formats.
• Taxpayers must disclose their scheme reference numbers to maintain tax compliance and avoid potential penalties.
• Lawyers advising clients on ATED-qualifying properties should emphasize the importance of timely disclosure.

HMRC has introduced a form for taxpayers with Annual Tax on Enveloped Dwellings (ATED) avoidance schemes to disclose their scheme reference numbers.

HMRC has introduced a form for taxpayers with Annual Tax on Enveloped Dwellings (ATED) avoidance schemes to disclose their scheme reference numbers. The AAG4(ATED) form is available in both postal and online formats, allowing taxpayers to submit the required information electronically or by mail. This development aims to enhance transparency and compliance among taxpayers utilizing ATED tax avoidance schemes.

The Annual Tax on Enveloped Dwellings (ATED) is a UK tax regime designed to target non-natural persons, such as companies or trusts, that hold residential properties. The ATED tax avoidance scheme reference number disclosure requirement stems from HMRC's efforts to prevent and detect tax evasion. By disclosing their scheme reference numbers, taxpayers can ensure compliance with the relevant regulations and avoid potential penalties.

Taxpayers with ATED-qualifying properties who have utilized tax avoidance schemes must now disclose their scheme reference numbers to HMRC. Failure to do so may lead to compliance exposures, including penalties and reputational damage. As a result, lawyers advising clients on these matters should emphasize the importance of timely disclosure to maintain their clients' tax compliance and avoid potential risks.

Lawyers advising clients with ATED-qualifying properties should ensure they disclose any relevant tax avoidance scheme reference numbers to HMRC, as failure to do so may lead to compliance exposures.

Source: Original reporting via GOV.UK