ATED revaluation reminder: Deadline 30/4/23

Annual tax on enveloped dwellings (ATED) is an annual tax charge payable by companies, partnerships (with at least one corporate partner) and certain collective investment schemes that own UK Residential properties exceeding £500,000.

Revaluation dates

For ATED purposes, properties need to be revalued at fixed revaluation dates, regardless of when the property was acquired. These revaluation dates are every fives after 1 April 2012, i.e. 1 April 2017, 1 April 2022 and so on.

The most recent revaluation date was 1 April 2022, with the new valuation taking effect for the 2023/24 ATED year and the subsequent four reporting years.

What action do I need to take?

If you hold a dwelling that you believe will fall within the ATED regime, which doesn’t qualify for 100% relief, you will need to acquire a new valuation as at 1 April 2022. The new valuation needs to be on an open-market basis, and we would recommend that this is undertaken by a reputable surveyor to ensure that it will stand up to the scrutiny should HMRC enquire.

There are numerous ATED reliefs available, such as farmhouses occupied by a farm worker.  Entities already claiming these reliefs do not need to revalue their properties as at 1 April 2022, provided that the relief continues to apply. A retrospective revaluation can be obtained at a later date if the property ceases to qualify for relief in the future.

Properties falling within ATED for the first time

If the 1 April 2022 revaluation exceeds £500,000 for the first time, an ATED return will need to be filed by 30 April 2023.

Any ATED charges arising are also payable by 30 April 2023.

If you would like help understanding your ATED reporting requirements, please contact your usual Whitings representative or call 01284 752313.

Disclaimer - All information in this post was correct at time of writing.