ATED valuations

If your company, partnership or investment scheme owns or partly owns a UK residential property valued at more than £500,000, you are responsible for submitting a chargeable return for ATED to HM Revenue and Customs (HMRC) on or after 1st April in any tax year, detailing the value of the property.  Based on this report, HMRC will calculate what tax you are required to pay.

The Kempton Carr Croft approach to ATED

At Kempton Carr Croft, our specialist surveyors provide accurate, detailed and trusted valuations of residential properties for ATED purposes.

We understand the careful balance between business costs and returns, and recognise that tax payments are a major consideration in this.  Whether yours is a family owned business or a national partnership, owning one or multiple properties, our surveyors are experts in ensuring that your property is accurately valued.   This will make certain that the tax you are charged is absolutely correct, giving you peace of mind that there will be no unexpected tax penalties. 

We aim for our expert valuations and ATED guidance to support you in making sound financial decisions relating to your property and tax responsibilities.

Kempton Carr Croft ATED valuation services

We are able to assess all categories of residential property, including houses, bungalows, flats and mixed-use developments.  We can also assess property of non-standard construction to provide our considered opinion of its value.

Our expert valuations will enable you to confirm whether the value of your property falls within the scope of ATED and, if so, which tax band the property fits in.  This is helpful in mitigating the risk of miscalculating ATED tax and the resulting penalties.

We will develop a detailed, evidence-based market valuation report, which complies with HMRC’s ATED valuation requirements.  Valuations for tax purposes often need to be reported for a specific, frequently historical date.   Our experienced surveyors are able to meet this need, along with accurate revaluation figures required for ATED returns.

Acting as your appointed ATED agent, Kempton Carr Croft’s professional Chartered Surveyors will determine the value of the building(s) to enable you to submit a chargeable return for ATED.  

On appointing Kempton Carr Croft to handle your annual ATED submission, our professional service will provide you with:

• Initial consultation – Personalised and dedicated consultation prior to the valuation to ensure any specific considerations or concerns are included in the inspection.
• Onsite survey – Onsite, detailed inspection of the property to ascertain the current market value.
• Backdated valuation – If a historic valuation is required for ATED purposes, we will discuss this with you and carry out the necessary research to provide accurate back-dated valuations.
• Survey report – An accurate property market value report for the ATED submission date.
• Professional liaison – Direct liaison with your appointed accountant.
• Representation with HMRC – Negotiation, on your behalf, with HMRC should they raise any queries regarding the value provided. This could, for example, include speaking with HMRC about the accuracy of the valuation and robust methods for its calculation or meeting with the District Valuer and making formal representation.

Choosing Kempton Carr Croft surveyors

Founded in 1986, Kempton Carr Croft is an established independent property consultancy, operating from eight offices in London and the South of England. We are proud to be a forward thinking and growing practice, who are trusted and recommended by our clients.

Our primary motivation is to help our clients: get the most from their investments, take advantage of new opportunities and make sound financial decisions relating to property.  Our success is measured by yoursuccess.

By choosing Kempton Carr Croft for your ATED valuation, we will offer:

• Trusted and professional service – you can be assured that we will accurately value the residential property, based on our comprehensive and specialist knowledge.
• Trained and experienced surveyors – who are registered members of RICS (Royal Institute of Chartered Surveyors). Our professional commitment means that we are dedicated to upholding global standards and our valuations are respected and accepted by HMRC.
• Consideration of your business needs – our property valuers have a broad understanding of the wider context, so can offer advice beyond your ATED valuation needs.
• A dedicated surveyor – the same person who values your property will be available for follow on questions and support.

Turnaround

We aim to turn reports around within five to seven days of inspection and you will be able to talk directly to the surveyor working on your behalf should you have any questions when you receive your report.

What is an ATED valuation?

ATED is an annual tax payable by companies, partnerships or investment schemes that own or, part own UK residential property valued at more than £500,000.

You need to complete an ATED tax return if your property is:

• Owned or partly owned by a company, partnership or collective investment scheme.
• A dwelling (when all or part of the property is used, or could be used as a residence, for example a house or flat and includes any gardens, grounds and buildings within the property) in the UK.
• It is valued at more than £500,000 on the 1st of April 2022 (or at a later purchase date).

Do I need an ATED property 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.

If you are unsure whether you fall into ATED brackets, please contact our general practice team for advice.

How much will a Kempton Carr Croft ATED valuation cost?

Before creating a quote, we will speak to you in detail about your property and company needs.  Every property and taxation requirement is different and we will offer you a bespoke service that exactly meets your requirements.  The professional valuation fees payable will therefore reflect the particular requirements of your property and the time which it is anticipated will be devoted to the matter.  

Please note that if we need to negotiate on your behalf with HMRC concerning the ATED valuation, meet with the District Valuer or make formal representation, this could incur additional costs, depending on the level of work required.

The Kempton Carr Croft team pride themselves on delivering specialist services which are fairly and transparently costed, and that bring tangible worth and benefit to your company, partnership or investment scheme.

What is the current valuation date for ATED purposes?

The current valuation date for ATED purposes is 1st April 2022.

We, therefore, value properties at this date if owned on or before that date.

For properties owned on or before 1st April 2022, the valuation date is 1st April 2022.

For properties owned AFTER 1st April 2022, the valuation date is the date that you acquired the property.

What are the ATED charge rates?

The current chargeable amounts for the period 1st April 2019 to 31s March 2022 are set out below:

Please note: The annual charge rates for ATED increase annually, in line with the Consumer Price Index.

How do I know what charging bracket my property falls into?

Once you have your ATED valuation from a Surveyor, 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

When does the ATED valuation need to be submitted?

ATED returns need to be submitted online to HMRC between 1^st April and 30^th April in any chargeable period.

The filing deadline for the 2023/2024 period is 30^th April 2024. Any ATED due should also be paid by that date.

Please note it is not possible to submit ATED returns before 1^st April of the corresponding year.

The business has recently invested in a residential property. When does the ATED need to be submitted?

If you purchase a property that falls within the current ATED tax regime, an ATED valuation will need preparing and submitting to HMRC within a 30 day period.

Can you conduct a desktop valuation?

Desktop valuations, where an opinion of value is reached without an inspection of the property, are not Royal Institute of Chartered Surveyors (RICS) Red Book compliant and, as such, we do not conduct them.

We do, however, conduct desktop valuation updates. These desktop valuation updates are only suitable if we have visited the property on your behalf before, no significant alterations have been made, or the time elapsed since the inspection was conducted is not too great.

Desktop valuation updates are commonly used when the validity of the original valuation has expired (usually after three months of valuation date) and a retype is requested to state that the original value is still correct and the market has not significantly changed.

Will the valuation be accurate?

It is important to secure accurate property valuations for ATED. Underestimate the value and you risk having to pay out more Tax than you expected, but if you overestimate, and you may have to spend significant time trying to reclaim your Tax over payment.

HMRC has the right to challenge and investigate a valuation through its District Valuer Service (DVS). If a valuation is challenged, particularly one not supported by a professional surveyor, you could face considerable penalties for having been ‘negligent’ in how you obtained the valuation.

By instructing a Royal Institute of Chartered Surveyors (RICS) registered Chartered Surveyor to provide an ATED valuation, you can be confident that you will be provided with an accurate valuation figure that will be accepted by HMRC when submitting your tax return.

RICS registered valuers follow industry best practice guidelines on how to reach valuation figures and are bound by the codes of conduct of their professional body.

Kempton Carr Croft is a RICS regulated firm. We hold PII insurance cover and all valuations are conducted by qualified RICS registered valuers.

What is covered in our ATED valuation service?

On appointing Kempton Carr Croft to handle your ATED valuation, you can be assured of a thorough and professional service.  We will work with you to determine and meet your particular requirements, but in general, you can expect:

• Initial advice in respect of ATED valuations.
• Consultation prior to the valuation to ensure any specific concerns you have are considered in the inspection
• Onsite inspection of the property.
• Reporting the Market Value at the applicable valuation date.
• Liaising with your accountant.
• Negotiating with HMRC should they raise any queries regarding the value provided.
• Valuation figures for ATED returns.
• Revaluation figures for ATED returns.

How long does it take to produce a valuation report?

We aim to produce ATED valuation reports within five to seven days of inspecting the property. Should you have any questions when you receive your report, you will be able to talk directly to the dedicated surveyor working on your behalf.

If there is need for an expediated report, please discuss this with us before the survey is carried out.

Do you conduct ATED valuations in my area?

Kempton Carr Croft’s Surveyors regularly provide valuations for properties throughout London and the whole of the South East of England. The team works from offices in Basingstoke, Camberley, Gerrards Cross, Maidenhead, London, Reading, Staines and Windsor.

Do you conduct ATED valuations in London?

Kempton Carr Croft’s Surveyors regularly provide valuations for properties throughout London and the South East of England. Our London practice is located in Mayfair and we have a further seven offices to the West and South West of London.