Under the Annual Tax on Enveloped Dwellings (“ATED”) legislation, if a company or corporate entity owns a UK residential dwelling, valuations on such properties must be updated every five years. A new valuation date arose on 1 April 2017.
Properties requiring revaluations to this date will be able to use the revised valuation for the five chargeable periods beginning on 1 April 2018. This applies to all properties owned at that date, even if acquired within the last five years.
Any companies, or certain corporate entities, that own a UK residential dwelling valued over £500,000 (enveloped dwelling) which fall within the ATED regime must submit an ATED return to HMRC annually whether tax is payable or relief is claimed.
The chargeable amounts for 1 April 2017 to 31 March 2018 were announced by HMRC several months ago.