New valuation date for Annual Tax on Enveloped Dwellings (ATED)
Date of Article
Mar 23 2022
Farms, estates & rural leisure

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Katherine Jones
Associate Partner, Planning & Development
01865 404448 Email me About Katherine

There is a new valuation date for ATED.

ATED is an annual tax that applies to residential dwellings in the UK that are owned by non-natural persons, and which have a value in excess of £500,000.  This includes properties that are owned by a company, under a corporate umbrella or in a collective investment scheme (such as unit trusts).

Your property is a ‘dwelling’ if all or part of it is used, or could be used, as a home.  This would include for example a house or flat, together with any gardens, grounds and buildings associated with the dwelling.

The annual charge until 31st March 2023 was due for payment on 1st April 2022 and was based on the value of the property on 1st April 2017 (or on acquisition, if later).  However, a new valuation will be required for next year’s 2023/24 ATED returns. Properties must be valued as at the 1 April 2022, with this value then valid for ATED returns for the next five chargeable periods (starting from 2023/2024).

As values have increased considerably since 2017, with the average growth in UK residential values at over 10% in 2021 alone, more properties will now tip over the £500,000 threshold and will be liable to the ATED. For that reason, it is important that you obtain an open market valuation of your property.

The amount you’ll need to pay is worked out using a banding system based on the property’s value (see below).  There are various reliefs available, but it is important to remember that returns must still be filed for relevant properties even where no ATED is due because a relief is available.

At Carter Jonas we can provide property valuations through our comprehensive network of RICS Registered Valuers across the country. Our valuation teams provide specialist advice and a balanced, market led approach, aided by up-to-date industry knowledge from our agents and extensive market contacts.

Chargeable amounts for 1 April 2022 to 31 March 2023.

Property value

Annual charge

More than £500,000 up to £1 million


More than £1 million up to £2 million


More than £2 million up to £5 million


More than £5 million up to £10 million


More than £10 million up to £20 million


More than £20 million