Annual Tax of Enveloped Dwellings (ATED)
MARKET VALUATION REPORTS
ATED is an annual tax paid by companies who own UK residential properties valued at £500,000 or more.
Much like the Council tax system, the amount of tax is determined by a banding process. That is properties whose values fall between specified figures will be liable for an annual tax, also at a specified level. It is therefore important to find out which band the property is in. For example, is the Market Valuation more than £1million but less than £2million or has it crept into the bracket which is more than £2million but less than £5million and so on. The first bracket is £500,000 to £1million.
ATED Valuations also have a specified valuation date which would in most instances be 1st April 2017, 1st April 2022 and so on for every five years. The tax payable includes the last financial year within the 5 year bracket (for example the April 2017 valuation date covers tax payable up until the end of the 2022/23 financial year. If a property is purchased after a 5 year valuation date, for example in June 2022, then the date of purchase can be the valuation date that the property needs to be assessed against.
For April 2022 ATED valuations, the return to HMRC needs to be completed by 30th April 2023 to avoid a fine being charged.
If an interest in property is altered during the five year period, there can also be an additional valuation date. For example, if there is an additional property interest valued at £40,000 or more, this can set a further valuation date. A common example here would be if £40,000 or more is paid for a lease extension.
ATED Valuations can be time critical and the need to ‘get it right’ is particularly considerable given the large tax payments that potentially rest on it. That’s why we ensure that all of our ATED Market Valuation reports are not only compliant with all regulatory guidance but are also sufficiently detailed and informative for our clients to rest assured that they are in good hands.
Regulated by the Royal Institution of Chartered Surveyors and with most of our reports provided within a week of instruction, you can rest assured that you are in safe hands with Websters Surveyors.
Our services span most of London and some surrounding areas including Hertfordshire, Buckinghamshire, Essex and parts of Surrey and Sussex.
Please contact us if you would like to discuss your requirements on 020 8017 1943.