If your Limited Company, Family Investment Company (FIC), or group structure holds UK residential property, now is the moment to check whether Annual Tax on Enveloped Dwellings (ATED) applies. Many companies only discover an ATED obligation after a deadline has passed, often because a relief applies (so no tax is due) but a return still needs to be filed.

This short guide explains who needs to file, key deadlines, common reliefs, current charges, and what to do now, including how to prepare for the next revaluation date in April 2027.

Quick Summary

You may need to file an ATED return if:

• UK residential property is owned by a non-natural person (such as a company, partnership with a corporate member, or certain collective investment schemes), and
• valued over £500,000.

Important: Even if a relief reduces the ATED charge to nil, a return must still be submitted to claim it.

What Is ATED and Who Needs to File?

ATED (Annual Tax on Enveloped Dwellings) is an annual tax that applies where a UK residential property worth over £500,000 is owned by a non-natural person, including:

• A company (including overseas companies)
• A partnership with a corporate member
• Certain collective investment schemes

A property is within scope if it is used or suitable for use as a dwelling, including associated grounds.

Excluded categories can include: student halls of residence and boarding school accommodation, hotels, care homes, hospitals, and prisons.

Common ATED Reliefs and Exemptions

Reliefs can reduce an ATED liability to nil, but you still need to file a return. Common reliefs include:

• Property let commercially to third parties
• Property under development for resale
• Traders’ stock of property
• Employee accommodation provided by a trading business
• Farmhouses for working farmers
• Registered providers of social housing

Certain entities, such as charitable companies using the dwelling for charitable purposes, may be exempt.

Tip: Relief positions can change during the year. If circumstances change after filing, an amended return may be required.

Deadlines and Payment Dates (the ones people miss)

Annual filing (in advance)

ATED returns must be submitted between 1 April and 30 April for the coming chargeable period (1 April to 31 March).

• Deadline for 2026/27: 30 April 2026
• Payment (if applicable): also due by 30 April 2026

Unlike most tax returns, ATED is filed in advance. This catches people out, so keep a record of changes during the year (for example, a property stops being let, or is occupied).

On acquisition during the year

Where a company acquires a qualifying property during the year, the ATED return is due within 30 days of acquisition.

For new builds, the return is due within 90 days from the earlier of:

• The property becoming a dwelling for council tax purposes, or
• First occupation

Late filing or late payment can lead to penalties.

Current ATED Charges for 2025/26 and 2026/27

ATED charges generally increase in line with CPI inflation. Standard annual charges are:

Property Banding	2025/26	2026/27
£500,000 to £1,000,000	£4,450	£4,600
£1,000,001 to £2,000,000	£9,150	£9,450
£2,000,001 to £5,000,000	£31,050	£32,200
£5,000,001 to £10,000,000	£72,700	£75,450
£10,000,001 to £20,000,000	£145,950	£151,450
£20,000,001+	£292,350	£303,450

 

Valuation Requirements and the 2027 Revaluation (plan ahead)

For ATED returns from 2023/24 to 2027/28, companies must use the property value as at 1 April 2022, unless the property was acquired later (in which case the acquisition cost applies).

Next major revaluation: 1 April 2027

A new valuation date of 1 April 2027 will apply for ATED periods 2028/29 through 2032/33.

This is worth planning for early, especially where a property could sit close to a band threshold, or where your business did not fall within the scope of ATED before because residential property was valued below £500,000 but in April 2027 it is over £500,000.

HMRC accepts:

• A self-valuation (director or in-house team), or
• A professional valuation by a qualified surveyor/valuer.

Valuations must be on an open market basis and expressed as a specific amount in sterling. HMRC may enquire into returns and challenge valuations.

What You Should Do Now (checklist)

As ATED season approaches:

• Check if you have a business (i.e. limited company, partnership with corporate member, etc.) that owns UK residential property above £500,000

• Check whether a relief applies and whether you have evidence to support it
• Review any acquisitions, disposals, or changes in use that could trigger a new or amended filing
• Plan for the revaluation April 2027 revaluation
• Diary the annual filing and payment deadline: 30 April

Need Help?

We can support with the full ATED compliance process, including:

• Preparing ATED chargeable returns
• Submitting relevant relief claims, and advice on relief eligibility
• Assisting with pre-return banding checks to ensure the correct valuation band is used
• Advice on upcoming revaluations
• Ongoing reporting requirements and amended returns where circumstances change

If you would like tailored support with your 2026/27 ATED return or any earlier outstanding filings, please get in touch via: ATED@goodmanjones.com

Author: La’Tisha Thompson