How to value a property for ATED

18 Oct 2021

Annual Tax on Enveloped Dwellings (ATED) could be payable on your company's property assets.
The Annual Tax on Enveloped Dwellings (ATED) is a tax payable by certain Non-Natural Persons (NNPs) that own interests in dwellings valued at more than £500,000. These provisions affect certain companies, partnerships with company members and managers of collective investment schemes described in the legislation as NNPs. To value a property, you can use a professional valuer or determine your own valuation. The valuation of the property must be in pounds sterling. Valuations must be on an open-market willing buyer, willing seller basis and be a specific amount. The valuation date depends on when you owned the property. The valuation dates are: <ul> <li>an initial valuation date,</li> <li>a revaluation date.</li> </ul> There are fixed revaluation dates for all properties, every 5 years after 1 April 2012, for example on 1 April 2017, 1 April 2022 and so on, regardless of when the property was acquired. The value of the property for any chargeable period is therefore the later of: <ul> <li>its initial valuation date,</li> <li>the revaluation date.</li> </ul> There is no ATED or ATED-related Capital Gains Tax payable if an individual owns a property directly, rather than through a company. There are also reliefs if a property is used for commercial purposes. <ul> </ul>

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