Annual Tax on Enveloped Dwellings (ATED) is an annual tax charge, payable mainly by companies that own UK residential property valued at £500,000 or above. If your company owns such a property, then you could be subject to ATED.

See our previous blog for further information.

If your company is currently exempt from the ATED charge and claims a relief then no annual tax liability is payable.

New valuation date required

ATED Returns (and tax if applicable) are always due at the beginning of the tax year to which they relate. The next ATED return is due by 30 April 2023 and a new valuation will be required for residential properties held on 1 April 2022. This value will then apply to the ATED returns for the next five chargeable periods (starting with 2023/24).

What does this mean for you?

If you fall into the criteria, then you will need to take action ahead of your next ATED return in April 2023. You will need to obtain an open market value of your existing residential properties as of 1 April 2022.

How do I re-value my property?

There is no obligation for you to have a formal valuation prepared by an independent valuer. You can use your own knowledge of the property and values within the surrounding area - however we would recommend that you keep records to support the basis for your calculation in the event this is challenged by HMRC. Guidance from HMRC has stipulated that the valuation must be a specific amount, rather than a ‘within the range of’ type valuation.

For properties acquired after 1 April 2022, the ATED valuation will be based on the acquisition date and therefore no additional information is required.

Get in touch with us

If you believe that you may need to complete an ATED declaration and have queries relating to the process, please get in touch with us and we will be happy to help.