Last updated: 18 October 2026
The Annual Tax on Enveloped Dwellings (ATED) is an annual tax payable on UK residential property valued at more than £500,000 that is held by a company, a partnership with a corporate member, or a collective investment scheme (such as a unit trust).
There are various reliefs and exemptions available, which may mean that there is nothing to pay. But a return is usually still required, and the deadline is 30 April at the start of each chargeable period.
Revaluation
Properties must be revalued every five years for ATED. The current valuation date is 1 April 2022, and it applies to the five chargeable periods from 2023/24 to 2027/28. Where the property was acquired after 1 April 2022, the value at the acquisition date is used instead. The next revaluation date is 1 April 2027, which will apply from the 2028/29 chargeable period. The tax due depends on which value band the property falls into.
Amount of the Charge
The chargeable amount is based on the value of the property and rises each year in line with inflation. The amounts for the 2026/27 chargeable period (1 April 2026 to 31 March 2027) are shown below, with the previous year for comparison.
| Property value | 2025/26 annual charge | 2026/27 annual charge |
| More than £500,000 up to £1 million | £4,450 | £4,600 |
| More than £1 million up to £2 million | £9,150 | £9,450 |
| More than £2 million up to £5 million | £31,050 | £32,200 |
| More than £5 million up to £10 million | £72,700 | £75,450 |
| More than £10 million up to £20 million | £145,950 | £151,450 |
| More than £20 million | £292,350 | £303,450 |
The charges for 2027/28 are normally published in the autumn before the period starts.
Exemptions and Reliefs
There are a number of exemptions and reliefs from ATED. Reliefs must be claimed on a Relief Declaration Return; they are not automatic.
The main relief applies where the property is let on a commercial basis to an unconnected third party and is not occupied at any time by anyone connected to the owner. Corporate landlords letting residential properties worth more than £500,000 should normally qualify for this relief.
Relief is also available for properties held by property developers for redevelopment and sale, properties held by property traders as stock for resale, properties open to the public, farmhouses, and properties occupied by qualifying employees.
Full details of the exemptions and reliefs are on GOV.UK at https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-reliefs-and-exemptions.
File the Return and Pay the Charge
Where a property is within ATED on 1 April, the return for that chargeable period must be filed using HMRC’s ATED online service by 30 April, and the tax paid by the same date. So the 2026/27 return was due by 30 April 2026, and the 2027/28 return is due by 30 April 2027.
Where a property is acquired during the period, the return must be filed and the tax paid within 30 days of acquisition. For newly built properties, the deadline is 90 days from the earlier of the date it becomes a dwelling for council tax purposes and the date it is first occupied. Late returns attract penalties and interest, even where a relief means no tax is due.
Other Taxes for Companies Holding Residential Property
Companies buying a residential property worth more than £500,000 may also pay Stamp Duty Land Tax at a flat 17% unless a relief applies, for example because the property is being let commercially. When the property is sold, any gain is charged to Corporation Tax, at up to 25%.
Partner Note: FA 2013 Pt. 3 (ss. 94–174; Schs. 33–35).
