First published 27th March 2017; Updated 15th November 2018

Residential property owned by a company is potentially subject to ATED (Annual Tax on Enveloped Dwellings) where the value on the valuation dates is more than £500,000. Relief from 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 April 5th 2017 valuation is tobe used for the calculation of ATED for each of the five years commencing April 2018.