Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable mainly by companies that own UK residential properties valued at more than £500,000. The ATED legislation requires that properties are revalued every five years, at fixed dates; 2023/24 is a revaluation year, with valuation required as at 1 April 2022 (or the date of acquisition, if later).
HMRC is reminding companies that revaluation is required. This can be done either by the taxpayer themselves or using a professional valuer. Valuations must be on an open-market willing buyer, willing seller basis and be a specific amount. An annual charge will then apply based on the valuation and where this falls within specified bands.
HMRC provides guidance on how to work out a valuation (link) and the ATED regime more generally (link) on GOV.UK, but your usual DSG contact will always be happy to provide guidance on how this may apply to your specific circumstances, including whether any exemptions may be available.
