The Annual Tax on Enveloped Dwellings (ATED) applies to companies which hold UK residential property with a value of £500,000 or more. There are fixed revaluation dates, every five years: the next is on 1 April 2022.

A valuation, on an open-market willing buyer, willing seller basis, must be determined for all relevant properties at 1 April 2022. The April 2022 revaluation will be utilised for the ATED returns and relief declarations for the next chargeable period 1 April 2023 to 31 March 2024, which are due for submission by 30 April 2023.

We have recommended valuers who can provide this service for you, please let us know If you would like us to put you in touch with one.

With recent increases to house prices in many areas, it is likely that a number of residential properties will fall into the ATED regime for the first time, if they are now valued at £500,000 or more, and that other properties will fall into a higher ATED band, and be subject to a greater ATED charge.

For advice on the ATED regime, please contact Katharine Arthur, Partner and Head of Private Client.