TT269: Does Your Company Own Residential Property? If Yes this is important information

April 24, 2018
Incorporating Residential Property Portfolios

If your company owns residential property then it could fall within the annual tax on enveloped dwellings (ATED) regime. ATED is an annual tax payable on residential property with a value in excess of £500,000 and not qualifying for any ATED reliefs, for example lettings relief.

ATED was introduced in April 2013 and ATED charges to date have been based on the values of properties at 1 April 2012. However, ATED rules include re-valuation dates on each 5th anniversary of 1 April 2012. This means that in completing a company’s 2018/19 ATED return a property valuation as at 1 April 2017 has to be used. This is the case even if the property has not been held for the 5 years from 1 April 2012.

It may seem that as the 2017 valuation is to be used for 2018/19 ATED period onwards there is plenty of time to obtain the 1 April 2017 valuation. However, if the property is owned on 1 April 2018 the ATED return has to be filed by 30 April 2018. It should also be noted that if a property is acquired after 1 April 2018 the ATED return has to be filed within 30 days of acquisition of the property.

The implications of the revaluation date for properties within companies are:-

  1. If the value increases it may put the property into a higher ATED band thereby increasing the ATED charge;
  2. Properties with a value less than £500,000 based on the 2012 value may have a value greater than £500,000 as at 1 April 2017 thereby bringing them into the ATED regime.

If you are unsure whether you are within the ATED regime and whether you have ATED charge to pay then please contact your usual Barnes Roffe partner or Paul Hughes (

There are severe penalties if ATED returns aren’t filed on time and interest is charged on late paid ATED tax.

Please note that this TT is not a definitive guide to the ATED regime.


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