7 frequently asked questions about ATED valuations

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ATED is an annual tax payable by companies that own or part own UK residential property valued at more than £500,000. See our ATED valuation page and 7 frequently asked questions and their answers below to ensure you stand the best chance of submitting a correct tax return first time. 

Do I need an ATED valuation?

If your company owns or partly owns a UK residential property valued at more than £500,000 you need to submit an annual tax return for enveloped dwellings (ATED) on or after 1st April in each tax year.  

What is ATED? (Annual tax for enveloped Dwellings)

ATED is an annual tax payable by companies that own or part own UK residential property valuated at more than £500,000. You need to complete an ATED tax return if your property is a dwelling, in the UK, is valued at more than £500,000 and if the property is owned or partly owned by a company, partnership or collective investment scheme.

What kind of property is classed as a dwelling?

For the purpose of ATED, a UK property where all, or part of the property is used, or could be used as a residence. E.g. house or flat including any gardens, grounds and buildings within them). The following kinds of property are NOT classed as a dwelling: hotel, guest house, board school accommodation, hospitals, student halls of residence, military accommodation, care homes, prisons. View https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance for further guidance on classification of a dwelling.

When do I need to submit an ATED?

On or after 1st April each tax year.

What tax charging band does my property fall into?

Once you have your valuation, use this guide or contact HMRC to confirm what charging band your property falls into and see how much you need to pay. https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-pre-return-banding-checks#banding-check

I have a mixed use property, how is this valued?

Properties with multiple uses, for example residential and non-residential, a valuation is only required on the residential part

I own a block of flats, do I need to value each flat individually?

If there are multiple self-contained flats, each flat is a dwelling and will need to be valued separately.

 

Want to know more? We have seven more things you should know about ATED valuations here. 

 

Need advice or services?
We have an experienced team of RICS registered valuers specialising in ATED valuations. View our ATED valuation service here or contact us  to discuss your individual needs. 
 
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