This is an advance notice for the change in reference date for the valuation of residential properties held via a company (“enveloped” properties). For the last 5 years the date has been 1 April 2017. Every 5 years this gets moved forward by 5 years. The next ATED period 23/24 is 1 April 2023 to 31 March 2024 and the reference date will be 1 April 2022.
Only properties with a value in excess of £500,000 are within the scope of ATED reporting. However, as the reference date has moved forward by 5 years, a property previously below the threshold may now have come within scope for the 2023/24 year.
The filing window for the 2023/24 year is 1 April 2023 to 30 April 2023, so now is the time to consider the valuation of your enveloped properties at 1 April 2022 and whether the £500,000 threshold has been exceeded.
If your property is now over the threshold and you would like assistance with completing the ATED forms or the ATED Relief Declaration forms, then please contact your usual contact at James Cowper Kreston or one of our Private Client Tax Team here.
