Annual Tax Enveloped Dwellings (ATED) - a new valuation date

Annual Tax Enveloped Dwelling (ATED)

1 April 2022 - a New Valuation Date

A new valuation will be required for 2023/24 ATED returns. Residential properties owned by non-natural persons must be revalued on 1 April 2022. This value will then apply to ATED returns for the next five chargeable periods (starting from 2023/2024).

With house prices having increased significantly since 2017, more properties will come within the scope of the ATED charge. Therefore, companies (and other non-natural persons) will need to obtain an open market value of their existing residential properties as of 1 April 2022.

Taxpayers must decide whether to prepare a valuation themselves or instruct a professional (e.g., a surveyor or estate agent). A new valuation may not be required where a relief has applied (and is expected to continue to apply) throughout the entire ownership period.

Where practical, it is advisable that this is obtained as close to 1 April 2022 as possible to ensure that companies (and other non-natural persons) are aware in advance of any potential ATED payments or increased payments that will be required in April 2023. For properties acquired after 1 April 2022, the ATED valuation will be based on the acquisition date?

Recap - What is ATED? 

If you need advice or guidance regarding ATED, please contact Violet Mower, Tax Manager. Alternatively, you can complete our online contact form, email us at enquiries@sopherco.com or call 020 8207 0602.