Prepare for ATED Property Revaluation in April 2023

The UK government's Annual Tax on Enveloped Dwellings (ATED) scheme has a crucial period in April 2023 for companies owning residential properties in the UK. All companies must revalue properties worth over the £500,000 threshold within one month between 1 and 30 April 2023 and submit their ATED return to HMRC with any payments due for 2023-2024. Failure to do so may result in incurring a penalty. 

Morris Graham, HMRC's Head of Stamp Taxes Policy, encourages companies to act quickly to complete the revaluations to ensure they remain compliant with the ATED scheme. He also advises those new to ATED to familiarise themselves with the guidance on GOV.UK.

The revaluation of a property can be done by the owner or by a professional valuer. It must be based on the property's value on either 1 April 2022 or the date of acquisition if it was after this date. This will determine the annual charge applicable for the next five years.

The rate of the annual payment depends on the property's value. For example, the charge for a property valued between £500,000 and £1 million is £4,150, increasing to £28,650 for those valued between £2 million and £5 million and £269,450 for properties worth more than £20 million. For a complete list of these rates, please visit GOV.UK.

It is also important to note that if a company owns residential properties previously worth less than £500,000, they should still undertake a revaluation to check if any of the properties now exceed the threshold.

The ATED scheme is essential for the government to ensure that companies owning UK residential properties comply with the relevant taxes. Companies must know the upcoming deadline and the rates applicable to their properties to remain compliant.

View Related Handbook Page


Navigate property investment tax complexities with our detailed guide. Make informed decisions about income, capital gains, and inheritance tax.