Annual tax on enveloped dwellings HMRC deadline

Companies have until the HMRC ATED tax deadline of 30th April 2023 to revalue owned residential properties in the UK. 

Companies that own residential properties in the UK have less than a month to revalue their property holdings and notify HMRC if they are worth more than £500,000. 

What are businesess required to do? 

Every five years, businesses are required to revalue residential properties in the UK in accordance with the Annual Tax on Enveloped Dwellings (ATED) legislation. The 2023 to 2024 chargeable period is a revaluation year. Companies must use the valuation date of 1 April 2022 or the date of aquisition if later, to revalue their properties. 

What is ATED tax legislation? 

It is an annual tax for a chargeable period of time from 1 April to 31 March. If a dwelling is owned by a business or an investment company it is said to be "enveloped". ATED stands for: Annual Tax for Enveloped Dwellings. 

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

For Property Investors: 

You need to arrange a property valuation. This can be done yourself. Or with a professional agent. Request a valuation with us DABORACONWAY Estate Agents. 

Discover more on ATED legislation basics.

This valuation sets the rate of annual payment until the following revaluation year. 

How much ATED tax do I need to pay? 

This sum and fee is worked on a banding system based on the value of the property. 

How to appoint an agent

You should register and use the ATED online service to appoint an agent to submit and manage tax returns. 

Submit your ATED tax return with the HMRC guidance. 

Failure to pay ATED Tax 

Businesses risk paying a penalty if they fail to submit their ATED Tax return on time to HMRC by the deadline. 

This would be to make any required payments for the years 2023 to 2024 between April 1st and April 30th 2023. 

The annual tax fee is charged following a property's revaluation for the following five years. 

DABORACONWAY Estate Agents strongly recommend that you seek professional advice from a qualified accountant and check previous chargeable amounts. Explore chargeable amounts for annual tax on enveloped dwellings.

Posted on: 5 April 2023