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Annual Tax on Enveloped Dwellings (ATED): Property Revaluation Due at 1 April 2017

13th March 2017

The ATED regime was introduced in 2013, and initially applied to UK residential properties held by companies (and other “non-natural persons”) with a value of £2m or more at 1 April 2012.  The regime has since been extended to include properties with a value of £500k or more. 

The first revaluation of properties is due at 1 April 2017, and we recommend that valuations are carried out on a timely basis, and retained for future reference and submission to HMRC if required.  It is the April 2017 value which will dictate application of the ATED regime and which will be included on ATED returns, from 1 April 2018.   The valuation must be on an open market, willing buyer, willing seller basis. 

Non-compliance with the regime or underpayment of tax resulting from an undervaluation will lead to a liability to interest and/or penalties.

The next ATED returns (for the period 1 April 2017 to 31 March 2018) are due for submission (along with payment of any tax due) by 30 April 2017, and will be based on the April 2012 value, or the value at the date of purchase, if later.

If you would like further information please get in touch with your normal haysmacintyre contact or Katharine Arthur.