ATED returns for 2026/27

The Annual Tax on Enveloped Dwellings (ATED) is a tax on residential property owned by a non-natural person, such as a company, which is valued at £500,000 or more, unless an exemption applies.

Where a property is within the charge to the ATED, the amount payable depends on the value of the property. Properties are revalued every five years for the purpose of the charge. The 2026/27 charge is based on the value of the property on 1 April 2022 or, where the property was acquired after that date, on its value at the date of acquisition.

ATED returns for 2026/27 are due by 30 April 2026. The return can only be submitted on or after 1 April 2026. This can be done online using the ATED online service on the Gov.uk website. Where a property within the charge is acquired after 1 April 2026, the company has 30 days in which to file the return. If the charge is not due, a Relief Declaration Return should be submitted instead, again using the ATED online service.

The ATED charge for 2026/27 is also payable by 30 April 2026 (or 30 days after the acquisition of the property if this is later). The amount due depends on the value of the property and the 2026/27 rates are shown in the table below.

Property value	Annual charge
More than £500,000 up to £1 million	£4,600
More than £1 million up to £2 million	£9,450
More than £2 million up to £5 million	£32,200
More than £5 million up to £10 million	£75,450
More than £10 million up to £20 million	£151,450
More than £20 million	£303,450

Exemptions

There are various exemptions and reliefs that mean companies owning residential properties do not need to pay the charge. The main exemption is for properties which are let to a third party on a commercial basis, and which are not at any time occupied by the owner. Exemptions are also available for properties which are being developed by a property developer and also for those which are owned by a property trader as stock of the business, and which are held for the purpose of resale.

Partner note: FA 2013, Pt. 3.

Disclaimer

This article is not intended to be tax advice. Each person's tax circumstances are different; therefore, we recommend that you contact us for personalized tax advice. Sam Niranjan & Co., or Sivasambu Candesamy Niranjan, will not accept any responsibility whatsoever if you make any loss as a result of relying on this article.