UK and International Tax news

ATED Property Revaluation At 1 April 2017

Wednesday 8th March 2017

The annual tax on enveloped dwellings (ATED) is currently based on property values at 1 April 2012,  with revaluations due every five years thereafter, with the next revaluation due on 1 April 2017.

ATED is a tax charge on non-natural persons (including companies, partnerships where at least one partner is a company and collective investment vehicles) that own a UK residential dwelling where the value of the dwelling exceeds a minimum. The minimum value was £2m from 1 April 2013, £1m from 1 April 2015 and £500,000 from 1 April 2016.

The amount of ATED charged depends on the charge band the property value falls into and is currently based on the value of the property at 1 April 2012, or the cost if bought subsequently. A new valuation will be required as at 1 April 2017, to be used from 1 April 2018 and for the subsequent five years.

For existing properties owned by non natural persons, it is therefore advisable to obtain April 2017 valuations in good time and be ready for the preparation and submission of ATED returns for the 2018/2019 year, being 30 April 2018 which is also the deadline to submit ATED relief declaration forms.

If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.

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