If your company owns UK residential property it may be within the Annual Tax on enveloped dwellings (ATED) regime. It is important that companies get their residential properties valued as at 1 April 2022.
Companies (and partnerships with corporate members) that own residential properties costing more than £500,000 or valued at more than £500,000 as at 1 April 2017 are required to file ATED returns (and potentially pay any tax) with HM Revenue & Customs.
There are exemptions that can be claimed to avoid the ATED charge If the properties are put to qualifying use such as let out commercially to third parties, held as stock, is being developed etc.
However, if the property is not used for qualifying purposes for example it is occupied by close family members, there is a flat rate ATED charge payable based on the valuation of the property on a increasing scale. The property has to be revalued every 5 years and the next valuation date is 1 April 2022.
If your company or partnership (which includes corporate members) own interest in any UK residential property (regardless whether it was required to file ATED returns in the past), please get the UK residential properties valued as at 1 April 2022.
If you do have any questions on Annual Tax on Enveloped Dwellings (ATED), please get in touch with your usual ABG contact or telephone us on 020 7330 0000.