Annual tax on enveloped dwellings (ATED) is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000. The taxable value will depend on the market value of your property on the latest valuation date.
There are fixed revaluation dates for all properties, every 5 years after 1 April 2012, for example at 1 April 2017, 1 April 2022.
“For enveloped dwelling properties (not just homes) there is an annual tax. It’s a common mistake to assume the valuation dates are every 5 years from the purchase of a property – this is not the case. The dates are fixed, and the latest revaluation date was 1st April 2022 which means if you haven’t yet valued your property, you must do it now.”
In this article, Toby outlines what you need to know:
Yes, if your property meets any of the following criteria:
You can work out the value yourself or by using professional valuer. Don’t forget, if you dispose of part of the property (by granting a lease or selling some of the land) you must revalue your property.
The taxable value will depend on the latest market value of your property (as of 1st April 2022).
Here are the basic bands you will be required to pay (1st April 2022- 31st March 2023:
|Property value (£)||Annual charge (£)|
|500,000 – 1 million||3,800|
|1 million – 2 million||7,700|
|More than 2 million up to 5 million||26,050|
|More than 5 million up to 10 million||60,900|
|More than 10 million up to 20 million||122,250|
|More than 20 million||244,750|
For more information, or to discuss specific circumstances, please get in touch.