HMRC have been writing to ATED taxpayers reminding them of the need to obtain a 1 April 2022 revaluation of properties ahead of the 2023/24 ATED year.

The Annual Tax on Enveloped Dwellings (ATED) applies each year to all companies holding UK residential property valued at over £500,000.  The company will need to know the value of their property at certain fixed valuation points to understand if it falls within the scope of ATED and the amount of tax which is due (if no relief applies).

In order to make sure the rates of tax reflect changes in property prices there is a revaluation point for ATED every 5 years (this started from 1 April 2012 and the latest revaluation point is 1 April 2022).  To give taxpayers time to obtain a new valuation, the revaluation figure only applies from the start of the next ATED period.  As a result, the 1 April 2022 valuation will need to be used for the return covering 1 April 2023 to 31 March 2024 (the filing deadline for the 2023/24 return is 30 April 2023).  

HMRC are writing letters to ATED taxpayers to remind them of the need to obtain a 1 April 2022 revaluation. If taxpayers or agents receive one of these letters then there is nothing to be concerned about, but the taxpayer should consider the contents and whether a revaluation will be required in their particular circumstances.  

For more information about how the revaluation dates work and what else taxpayers within the scope of ATED should be considering, you can read my previous Passle post (ATED update for 2022) here.

If you or your client would like further guidance on your ATED or UK tax obligations then please contact me at ronnie.myers@burges-salmon.com.