Does your Company own any residential properties?
If your company owns a residential property in London worth more than £500,000, you may have to pay Annual Tax on Enveloped Dwellings (ATED).
A RICS Registered Valuer can accurately estimate your property’s value and suggest legal methods to reduce your financial burden.
We will provide you with a robust valuation report that is necessary for your accountant to calculate your tax obligations.
This ensures that you receive the best possible outcome while ensuring that you remain compliant with regulations.
With ATED valuations being due every five years, it’s essential that you contact our RICS Valuers for an efficient, prompt and high-quality services.
Frequently Asked Questions
What is ATED?
ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.
What is a dwelling?
Your property is considered a dwelling if any part of it is used, or could be used, as a residence, such as a house or flat. This includes any gardens, grounds, and buildings within them.
Which properties are exempt from ATED?
Some properties are not classed as dwellings, such as hotels, guest houses, boarding school accommodation, hospitals, and student halls of residence.
Do I need an ATED valuation?
As per the legal rules and regulations, acquiring a valuation report every five years is essential and must be followed.
Engaging the services of a RICS Valuer will enable you to accurately determine the value of your property.
Your accountant can use this to figure out how much tax you’ll need to pay for your dwelling in the next 5 years.
An accurate valuation ensures that you avoid paying excessive taxes.
How much ATED do I owe?
Any dwelling, provided its value is greater than half a million pounds, owned in partnership with a company or investor may be subject to ATED.
The annual chargeable amounts for ATED increase annually in line with the Consumer Price Index.
The current chargeable amounts for 1 April 2023 to 31 March 2024 are set out below.
|Property value||Annual charge|
|More than £500,000 up to £1 million||£4,150|
|More than £1 million up to £2 million||£8,450|
|More than £2 million up to £5 million||£28,650|
|More than £5 million up to £10 million||£67,050|
|More than £10 million up to £20 million||£134,550|
|More than £20 million||£269,450|
There are reliefs available to reduce chargeable amounts to nil. However, a Relief Declaration Return needs to be prepared and submitted online to HMRC by the due date in order to claim the relief. Some examples of reliefs that are available are where the property is:
- let to a third party on a commercial basis and isn’t, at any time, occupied (or available for occupation) by anyone connected with the owner;
- open to the public for at least 28 days a year;
- being developed for resale by a property developer;
- owned by a property trader as the stock of the business for the sole purpose of resale;
- repossessed by a financial institution as a result of its business of lending money;
- acquired under a regulated Home Reversion Plan;
- being used by a trading business to provide living accommodation to certain qualifying employees;
- a farmhouse occupied by a farm worker or a former long-serving farm worker;
- owned by a registered provider of social housing.
How can we help you?
Valuations are not just a legal obligation, they provide you various essential benefits.
Our valuation will enable you to minimise your tax obligations and save money by taking advantage of exemptions and tax reliefs. Knowing which deductions you qualify for can save you time and energy when it comes to filing your taxes. With the right knowledge, you can benefit from exemptions and reliefs available to you while staying compliant with government regulations.
It is important to accurately calculate the value of your properties, and to do so in a professional manner. Not doing so can lead to costly legal repercussions, and it’s best to avoid them if at all possible. By using the right tools and resources, we can ensure that your valuations are accurate and compliant with all relevant regulations.
ATED is an unavoidable expense. To help you make informed decisions about your finances for the next five years, obtaining a valuation can be beneficial. Doing so will provide you with an in-depth understanding of the impact ATED will have on your budget and allow you to plan accordingly.
Delays can be costly for any business, whether it’s due to mistakes or miscommunication. But with the help of RICS Valuers, you can avoid them altogether. Our experienced professionals will provide you with an accurate report that ensures nothing interferes with your operations. This way, you can save time and energy while being confident that your business is running smoothly.
Call our team of property experts today
Foundation Chartered Surveyors’ & Valuers take care of all the paperwork remotely, sparing you from the burden and allowing you to focus on your strengths.
We can assist you in minimising costs, avoiding legal issues and providing invaluable advice – all of which could potentially save you thousands.
If you want to learn more about ATED valuations in London or discuss your needs with a forward-thinking RICS Registered Valuer, don’t delay, contact us today!