First published 27th March 2017; Updated 15th November 2018
Residential property owned by a company is potentially subject to Annual Tax on Enveloped Dwellings where the value on the valuation dates is more than £500,000
Relief from Annual Tax on Enveloped Dwellings (ATED) may be available if the use of the property meets one of several criteria including commercial letting or development.
Whether your property qualifies for relief or not you must still notify HMRC and complete annual Returns for ATED. You must also have the property revalued once every five years.
April 2017 was another valuation date and so if your property is held through a company it is now time to get it revalued whether you are entitled to relief from the ATED or not. The 5th April 2017 valuation is to be used for the calculation of Annual Tax on Enveloped Dwellings for each of the five years commencing April 2018.
The information contained in this article is believed to be correct at the time of publication. The content of this article is intended to be a brief summary of the principal points of the legislation or proposed legislation only, and it is provided for general guidance only. It may not take into account subsequent changes in the law and of necessity it omits much detail. Taxation is a complicated subject and is subject to change. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article. If the subject matter is of interest you should contact us to see if there is a relevant update, and to take professional advice which takes into account your circumstances.