ATED, or the Annual Tax on Enveloped Dwellings, was introduced to the UK on 1 April 2013 as a charge against UK residential property owned in part or whole by any jurisdiction’s company, corporate partnership, or collective investment scheme (the chargeable person) of a value exceeding £500,000.

It was conceived as a disincentive to the practice of “enveloping” property or using a corporate wrapper to mitigate tax and maintain anonymity. The ATED return must be filed on/after 1 April, usually due by 30 April if owned on 1 April, otherwise generally due within 30 days of acquisition.

Who is in scope

• The chargeable person must be non-natural (not an individual).

What ATED applies to

• ATED applies to UK residential dwellings held by companies and other non-natural persons. Certain situations may qualify for relief, including where the property is commercially let to third parties, is being actively marketed for letting, or is held as trading stock by a property developer. Where relief reduces the ATED charge to nil, it must still be claimed by submitting a Relief Declaration Return.

Exemptions and what counts as a dwelling

• A qualified exemption may apply where a property is used for charitable purposes, or where a charitable company or public body owns it.
• A dwelling is a property used, or capable of being used, as a residence.
• Guest houses, hotels, and care homes typically fall outside ATED because they are not treated as dwellings.

Valuation and record keeping

• Properties must be valued every five years, either by the owner or a professional valuer. The current valuation date is 1 April 2022, which applies for ATED chargeable periods 2023–24 through to 2027–28. HMRC may challenge valuations they consider inaccurate and penalties may apply.
• Retain adequate records to support the return/relief claims; penalties can apply for failures to retain records (up to £3,000).

Filing dates

• If you acquire a qualifying property part-way through the chargeable period, file the ATED return within 30 days of acquisition.

Late or incorrect returns and payments can trigger significant penalties and interest, so file on time.

CHANGES FOR 2026

Now for 2026/2027; see chargeable amounts table below: