If your company owns UK residential property, understanding the Annual Tax on Enveloped Dwellings (ATED) is essential. With strict filing deadlines, mandatory returns even where relief applies and increasing HMRC scrutiny, ATED compliance is not an area to overlook.
This guide explains ATED for 2026/27, including rates, deadlines, reliefs and filing requirements.
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What is ATED?
The Annual Tax on Enveloped Dwellings (ATED) is a UK tax charged on residential dwellings held by Companies. Your property is a dwelling if all or part of it is used, or could be used, as a residence, for example a house or flat. It includes any gardens, grounds and buildings within them.
ATED applies where:
- The property is residential, and
- The property is valued at more than £500,000
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ATED 2026/27 Key Dates
The ATED chargeable period runs from 1 April 2026 to 31 March 2027.
ATED filing deadlines
- 30 April 2026 – for properties held on 1 April 2026
- Within 30 days of acquisition – if a property is acquired during the year
- Within 90 days – for newly built or newly enveloped properties
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ATED Rates
The ATED charges for 1 April 2026 to 31 March 2027 are:
| Property Value | Annual Charge |
| £500,001 – £1m | £4,600 |
| >£1m – £2m | £9,450 |
| >£2m – £5m | £32,200 |
| >£5m – £10m | £75,450 |
| >£10m – £20m | £151,450 |
| Over £20m | £303,450 |
These rates increase annually in line with inflation.
https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics
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Do You Need to File an ATED Return if No Tax is Due?
Yes! Even if no ATED is payable, you must still:
- Submit an ATED return to claim relief, or
- File a Relief Declaration Return
Failure to file can result in penalties, regardless of whether tax is due.
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ATED Reliefs Available
Several reliefs are available which can eliminate the ATED charge, including where the property is:
- let on a commercial basis and is not, at any time, occupied or available to anyone connected to the owner;
- being developed for resale by a property developer;
- owned by a property trader as stock of the business for the sole purpose of resale;
- open to the public for at least 28 days in the year;
- repossessed by a financial institution in the course of its lending activities.
Reliefs are not automatic and must be claimed through the ATED return.
For a detailed technical overview, see the guidance published by the Association of Chartered Certified Accountants in their article, “All you need to know about ATED.”
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ATED Penalties and Interest
HMRC imposes penalties and interest for late filing or not making payment on time. Penalties can also be charged if there are errors in the return submitted.
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Need Help with ATED Returns?
If you hold residential property through a company, professional advice can help ensure compliance and identify planning opportunities.
Get in touch on 020 4539 4203 for assistance.
https://www.raineaccountants.co.uk