Do you have a company which owns residential properties valued at over £500k?

If you do, then you may have to file an ATED return (Annual Tax on Enveloped Dwellings) and pay additional taxes on them.

ATED returns are submitted in April each year for the tax year in advance. So for 2024/2025, ATED Returns  must have been submitted to HMRC by 30 April 2024 and any charge paid over for any properties held the start of the tax year.

Think this doesn’t apply to you?

The lower valuation limit was originally £2m when this tax was introduced in April 2013 but has been reduced down to a mere £500k, bringing many more properties under the umbrella.

So what are yours worth?

A few years back, a number of savvy people realised that buying a residential property through a limited company would result in a much lower bill for Stamp Duty. The ATED system was promptly introduced by the government to discourage that by imposing another tax to compensate.

An ATED return is required in respect of each individual property. Claims for any reliefs that may apply need to be prepared and submitted separate to the actual return itself.

The tax charge for property held in the current period from April 2024 to March 2025 is £4,400 and substantially more for properties valued at over £1m with further large band increases at £1m, £2m, £5m, £10m and £20m.

The rules related to this tax are complex and there are a number of reliefs that can be claimed.

There are strict and rapidly escalating penalties for anyone who fails to submit their returns in time.

You must revalue your property every 5 years in line with ATED legislation.

The 2023 to 2024 chargeable period is a revaluation year.

If you acquired a property:

  • on or before 1 April 2022 — use 1 April 2022 as the revaluation date
  • after 1 April 2022 — use the date you acquired it as the valuation date

For help with ATED returns

If you are worried that this may apply to you and you need some help with your ATED filings then please get in touch immediately. We can assist you both to obtain the correct valuations and also to prepare and submit your ATED returns on time.

Take a look at our separate website section specially written for Landlords here

More details can be found on the Government website here

Need further advice on any of the topics being discussed? Get in touch and see how we can help.

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    About Karen Jones

    Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.

    With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.

    Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”

    Karen’s specialist skills:

    • Personal Taxation
    • Tax Efficient Planning
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