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Businesses urged to check their Annual Tax on Enveloped Dwellings (ATED) valuations

Annual Tax on Enveloped Dwellings (ATED) is payable mainly by businesses that own UK residential property valued at more than £500,000.

HMRC has sent letters asking businesses to check whether the valuations they have used to determine ATED liabilities since 2018 are correct.

According to the tax authority’s records, the bands used by the taxpayer in the returns for the ATED chargeable periods 2018/19 to 2022/23 may be incorrect. Recipients of the letters may need to tell HMRC about additional tax that is due by making a disclosure.

Valuation dates are every five years, starting on 1 April 2012, and now 1 April 2023 to 31 March 2024 is a revaluation year.

Revaluations take effect for the first ATED chargeable period beginning after the valuation date.

Relevant period

For example, liabilities for the ATED chargeable period 2018/19 and the following four periods are based on the 1 April 2017 valuation.

Returns must be submitted on or after 1 April in any chargeable period (which runs from 1 April to the following 31 March) and be filed by 30 April in the relevant period.

There are reliefs and exemptions from the tax, which may mean you do not have to pay.

An ATED return must be completed if the property is:

What you need to pay

The amount you’ll need to pay is worked out using a banding system based on the value of your property.

Chargeable amounts for 1 April 2023 to 31 March 2024:

Property value                                                 Annual charge

More than £500,000 up to £1 million              £4,150

More than £1 million up to £2 million             £8,450

More than £2 million up to £5 million             £28,650

More than £5 million up to £10 million           £67,050

More than £10 million up to £20 million        £134,550

More than £20 million                                        £269,450

Need help dealing with ATED and the calculations? Contact us today.


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