The Annual Tax on Enveloped Dwellings catches residential properties in the UK owned by companies, certain partnerships and collective investment schemes. If your business owns a residential property worth more than £500,000, ATED is relevant. The 2026/27 return deadline has already passed.
Book a free call with our team. We advise property companies and investors across the UK.
The 2026/27 rates
| Property value | Annual charge 2026/27 |
|---|---|
| £500,001 to £1 million | £4,600 |
| £1 million to £2 million | £9,450 |
| £2 million to £5 million | £32,200 |
| £5 million to £10 million | £75,450 |
| £10 million to £20 million | £151,450 |
| Over £20 million | £303,450 |
The charge is based on the property’s value as at 1 April 2022, or the date of acquisition if the property was bought after that date. Properties are revalued for ATED purposes every five years.
When was the return due?
ATED returns for 2026/27 were due by 30 April 2026. If you own a property through a company and have not filed, you need to address that now. Late filing penalties apply and the charge itself was due by 30 April 2026. Where a property within the charge is acquired after 1 April 2026, the company has 30 days from the acquisition date to file and pay.
The main exemptions
ATED has a number of significant exemptions that mean many companies holding residential property do not actually pay the charge. The most important is for properties commercially let to a third party on fully commercial terms where the owner does not occupy the property at any time. This covers most standard buy-to-let scenarios held through a company. Exemptions also apply to property developers holding stock and property trading companies. Even where an exemption applies, a Relief Declaration Return must still be filed. Failing to file can result in penalties even where no ATED is actually payable.
Book a free call. We help property companies check their ATED position and file returns on time.
How to file
ATED returns are filed using HMRC’s ATED online service on Gov.uk. Paper returns are not accepted. Each property needs its own return.
Book a free introductory call to discuss your ATED position and whether any exemptions apply.
