Annual Tax on Enveloped Dwellings (ATED) is a tax levied on high-value residential properties owned by companies or other corporate entities. The purpose of ATED is to discourage the use of corporate structures to avoid or reduce tax liabilities.

The ATED regime was introduced in 2013 and applies to residential properties valued above the £500k threshold. The threshold is subject to change and may vary from year to year, so it's essential to check the current threshold set by HM Revenue and Customs (HMRC).

Properties within the scope of ATED are required to file an annual ATED tax return and pay the corresponding tax. The tax liability is determined based on the value of the property and falls into different chargeable bands, with each band having its own annual tax rate. The 2023/2024 ATED rates are:

Property value / Charge

£500,001 - £1m  / £4,150

£1m - £2m / £8,450

£2m - £5m / £28,650

£5m - £10m / £67,050

£10m - £20m / £134,550

Over £20m / £269,450

Do I need a professional valuation for ATED?

A revaluation of the property at 1 April 2022 is now required and will form the basis for the ATED charge for properties for the next five years. Updated revaluations are likely to take many properties over the £500k threshold and into the ATED regime for the first time and, five years on from the last valuation, many properties could go up a band. Therefore, using a professional valuation is highly recommended for several reasons. At Mylako chartered surveyors, our RICS registered valuers possess the expertise and knowledge necessary to accurately assess the market value of your residential property. Our in-depth understanding of property markets and valuation methods ensures that the valuation is conducted in accordance with the requirements set by HMRC. This helps you avoid under or overestimating the value, which can lead to potential penalties or paying more tax than is necessary. Furthermore, our valuations reports carry more weight and credibility with HMRC. The tax authorities are more likely to accept a valuation report prepared by a registered valuer as it demonstrates a thorough and objective assessment of the property's value. This can help in mitigating any potential challenges or disputes during the ATED tax assessment process.
Why Mylako Chartered Surveyors?

Why Mylako Chartered Surveyors?

Our RICS Registered Valuers have specialised knowledge and expertise in property valuation, including ATED valuations. We have extensive experience in conducting valuations for a wide range of properties, including houses, flats, mixed-use developments as well as properties of non-standard construction. Our detailed reports provide accurate and reliable assessments which adhere to specific regulations and guidelines set by HMRC, so you can be rest assured that our professional standing and reputation within the industry add weight and credibility to our valuations, increasing the likelihood of smooth and satisfactory outcomes during the ATED tax assessment process.

What to find out more?

Contact our RICS registered valuers today to arrange your valuation appointment that will save you time and money, speak to us directly on 020 7183 0321.

Mylako can support you

Whether you’re buying or selling, extending your lease, calculating your tax liabilities, or looking for a dedicated Property Manager
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