ATED (Annual Tax on Enveloped Dwellings) Explained

8 February 2023

ATED (Annual Tax on Enveloped Dwellings) Explained

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000. It was introduced in 2013 to discourage the use of corporate structures to own residential property, which can deprive the government of stamp duty and other taxes.

You’ll need to complete an ATED return if your property:

·         is a dwelling

·         is in the UK

·         was valued at more than:

·         £2 million (for returns from 2013 to 2014 onwards)

·         £1 million (for returns from 2015 to 2016 onwards)

·         £500,000 (for returns from 2016 to 2017 onwards)

·         is owned completely or partly by a:

·         company

·         partnership where any of the partners is a company

·         ­collective investment scheme — for example a unit trust or an open ended investment vehicle

Returns must be submitted on or after 1 April in any chargeable period.

Why is it recommended to obtain a RICS Red Book valuation of a property for ATED purposes?

  • Accuracy: RICS Registered Valuers are highly qualified and experienced professionals who use a rigorous methodology to assess the value of your property.
  • Independence: RICS Registered Valuers are independent and impartial, so you can be confident that your valuation will be fair and accurate.
  • Compliance: RICS Red Book valuations comply with the requirements of the ATED legislation.
  • Peace of mind: A RICS Red Book valuation can give you peace of mind knowing that your property is being valued in accordance with the highest professional standards.

Here are some of the benefits of using Henry Adams Chartered Surveyors:

  • Local knowledge: Our valuers have a deep understanding of the local property market in West Sussex and the factors that affect the value of residential property in the area.
  • History: We have access to hundreds of historic comparable transactions and can provide you with a more accurate and informed historic valuation of your property if required.
  • Reputation: We have a reputation for providing high-quality valuation services.
  • Transparency: We will provide you with a clear and concise valuation report that explains how we arrived at our valuation. We will also be happy to answer any questions you have about the valuation process or the value of your property.

Henry Adams Chartered Surveyors are a leading provider of RICS Red Book valuation services in West Sussex. We have a team of experienced and qualified valuers who can help you with all of your ATED valuation needs. Please do not hesitate to get in touch on 01243 215840 should you wish to discuss any aspect of the above or if you would like us to provide a fee quote for a Red Book Valuation.

Do you need a professional RICS property valuation?

Our team of Chartered Surveyors provide professional RICS Valuations to home-owners, land-owners, companies, banks, charities, developers, housing associations and other institutional clients.

Find out more
Go to Valuations & Leasehold Negotiations news hub