Deadline looms for companies to revalue UK residential properties worth more than £500,000
Companies that own UK residential properties have one month to revalue and tell HM Revenue and Customs (HMRC) if any are worth more than £500,000.
Under the government’s Annual Tax on Enveloped Dwellings (ATED) rules companies must revalue UK residential properties every five years, and 2023 to 2024 is one of those years.
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 this was after 1 April 2022. This valuation sets the rate of annual payment until the next revaluation year.
Companies must submit their ATED return to HMRC and make any payments for the 2023 to 2024 period between 1 and 30 April 2023 or they could face a penalty.
Companies that own residential properties in the UK, which were previously worth less than £500,000, should ensure they undertake a revaluation and notify HMRC by completing an ATED return if any of their properties now exceed the threshold.
For full details on the ATED return, please see https://www.gov.uk/guidance/register-for-the-annual-tax-on-enveloped-dwellings-online-service
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