Companies including farm businesses that own any UK residential properties must revalue them every five years.
Any properties which were previously worth up to £500,000 must now be revalued and you must notify HMRC if any properties now exceed the threshold by completing an ATED return.
The revaluation can be done by the owner or by a professional valuer and must be based on the value of the property on 1 April 2022, or the date of acquisition if it was acquired after 1 April 2022.
Companies must submit their ATED return and make any payments for the 2023 to 2024 period between 1 and 30 April 2023.
More information can be found at: Annual Tax on Enveloped Dwellings | GOV.UK
How much are the annual charges?
Once a property has been revalued, the annual charge is then applicable for five years beginning on 1 April 2023.
The charge is dependent on the property’s value and starts at £4,150 for properties valued between £500,000 and £1 million.
This rises to £28,650 a year for properties valued above £2 million and up to £5 million, and to £269,450 for properties worth more than £20 million.
A full list of rates can be found at: Annual Tax on Enveloped Dwellings | GOV.UK.
Are there any exemptions?
There are reliefs and exemptions from the tax which may mean you do not have to pay. However, you still need to submit an ATED return.
For example, a farmhouse occupied by a farm worker or a former long-serving farm worker, or where a residential property is let to a third party on a commercial basis.
What you need to do
Companies must submit their ATED return and make any payments for the 2023 to 2024 period between 1 and 30 April 2023.
More information can be found at: Annual Tax on Enveloped Dwellings | GOV.UK