If your company owns UK residential property worth over £500,000, ATED could apply to you. And the deadline to file and pay is approaching fast.

Below, we break it down in plain English so you know exactly what to do.

What is ATED?

ATED stands for Annual Tax on Enveloped Dwellings. It applies to UK residential property held by a company, corporate partnership, or collective investment scheme. Individuals are not affected.

It was introduced to discourage companies from using “wrappers” to reduce tax or stay anonymous when owning residential property.

Who Needs to Pay?

This tax only applies to non-natural persons (like companies). If your company owns UK residential property worth over £500,000, you may need to file an ATED return.

What Counts as a Dwelling?

Any property that is or could be used as a home.
This includes houses, apartments, and similar. However, commercial properties such as hotels, guesthouses, and care homes are typically excluded.

If the property has multiple self-contained flats, each is valued separately. This can sometimes reduce the total tax owed.

How Much Does It Cost?

ATED is calculated based on the property’s value. Here are the charges for the 2025–2026 period:

When Do You File and Pay?

You must file your ATED return and pay the charge between 1–30 April 2025. This covers the chargeable year ahead (not the previous year).

If your company buys a qualifying property during the year, you have 30 days from the date of acquisition to submit your return.

Can You Claim Relief?

Yes, reliefs are available. If your property is rented to a third party, under development, used for charitable purposes, or held as stock, you may be exempt.

However, you must file a Relief Declaration Return to reduce your charge to zero. Without it, HMRC assumes full payment is due.

What About Valuations?

Properties must be revalued every five years. You can do this yourself or use a professional. The current revaluation period is from 2023 to 2028.

Mistakes in valuation can lead to penalties, so accuracy matters.

Don’t Forget the Penalties

Late filings, incorrect information, or missing records can result in serious fines. For example, failing to keep proper records for six years could result in a £3,000 penalty.

The Bottom Line

If your company owns UK residential property worth over £500,000, check whether ATED applies to you.
And if it does, file your return and pay by 30 April 2025.

If you’re claiming relief, don’t forget to submit the correct form.

📩 Need help filing or have questions about structuring your property holdings? Our team is here to help — get in touch.