ATED is an annual tax payable by companies that own UK residential property valued in excess of £500,000. The ATED period runs from 1 April to 31 March in the following year. The filing deadline is 30 April (following the 1 April) in each year.

The charge is calculated by reference to the value of property owned by the company on the applicable ATED valuation date. The current valuation date is 1 April 2017. A revaluation exercise is carried out every five years. The next revaluation for ATED is therefore due on 1 April 2022.

ATED returns for the 2022/23 period may use the 1 April 2017 valuation for the property, or alternatively the 1 April 2022 value may be used, if available. ATED returns for 2023/24 must use 1 April 2022 valuations. In practical terms, HMRC allow companies subject to the ATED charge a ‘grace period’ of one year to obtain 1 April 2022 valuations.

There are some exceptions, such as where residential property is rented to a third party and where the company only owns as nominee

As announced in the Autumn 2021 Budget, the rates of ATED applicable to the 2022/23 ATED period are as follows:

Summary of applicable ATED rates for the period 1 April 2022 to 31 March 2023

Property value

Annual charge

More than £500,000 up to £1 million

£3,800

More than £1 million up to £2 million

£7,700

More than £2 million up to £5 million

£26,050

More than £5 million up to £10 million

£60,900

More than £10 million up to £20 million

£122,250

More than £20 million

£244,750

Next steps

1 April 2022 valuations will need to be obtained for each property held by a company which is within the scope of the ATED charge.   

Although taxpayers can assess property values themselves, our recommendation is usually that a professional valuer is instructed to carry out the valuation exercise. The main circumstances where it may not be necessary to procure a professional valuation is if the property qualifies for ATED relief, and is thought likely to continue to do so for the entire five year period (e.g. until the next re-valuation date). We can advise further on the availability of ATED reliefs, if any of these may apply.

The outcome of the revaluation exercise could result in a company being moved into the next ATED band. For example, a property with a 1 April 2017 valuation of £4.5 million and a 1 April 2022 valuation of £5.2 million will result in a significant uplift in the annual ATED liability. An increase in the property valuation may be as a result of inflation, but could also be as a consequence of extensive renovation works, improvement works, or extension to the property. In particular if the latter is the case, the input of a professional valuer is recommended.

Companies should arrange for a professional property valuation to be undertaken as at 1 April 2022 for ATED purposes. The valuation exercise should be undertaken well in advance of the 2023/24 ATED return is due (e.g. before 30 April 2023).

Please contact Sarah Rust for advice on your ATED filing obligations and for assistance with preparing and submitting ATED returns on behalf of your company.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at April 2022. Specific advice should be sought for specific cases. For more information see our terms & conditions.  

Date published

04 April 2022

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