ATED 2026/27: Key Deadlines, Charges & Reliefs Explained

What is ATED?

The Annual Tax on Enveloped Dwellings (ATED) applies to residential properties held by non-natural persons—typically companies—where the property value is £500,000 or more. However, not all properties fall within the charge, as certain exemptions and reliefs may apply.

How Property Value Affects ATED

The amount of ATED payable depends on the property’s valuation. Properties are reassessed every five years. For the 2026/27 tax year, the valuation is based on:

• The property’s value as of 1 April 2022, or
• The value at the date of purchase, if acquired after that date

Filing Deadlines You Should Know

ATED returns for the 2026/27 period must be submitted by 30 April 2026. Filing opens from 1 April 2026 via the official online ATED service.

If a property is acquired after 1 April 2026, the return must be filed within 30 days of acquisition.

Where no tax is payable due to reliefs or exemptions, a Relief Declaration Return still needs to be submitted using the same online service.

Payment Deadlines

Any ATED liability for 2026/27 must also be paid by 30 April 2026, or within 30 days of acquiring the property, if later.

ATED Charges for 2026/27

The annual charge is based on the property’s value, as outlined below:

• £500,001 – £1 million: £4,600
• £1 million – £2 million: £9,450
• £2 million – £5 million: £32,200
• £5 million – £10 million: £75,450
• £10 million – £20 million: £151,450
• Over £20 million: £303,450

Available Exemptions and Reliefs

Not all properties owned by companies will incur ATED. Common exemptions include:

• Properties rented out commercially to third parties, provided they are not occupied by the owner
• Properties under development by a property developer
• Properties held as trading stock by property businesses, intended for resale

Understanding these reliefs is essential, as they can eliminate the ATED charge—but still require a return to be filed.

Staying compliant with ATED requirements is crucial to avoid penalties. Timely filing and a clear understanding of applicable reliefs can help businesses manage their obligations effectively.

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