ATED is the annual tax charge on UK residential properties worth more than £500,000 held within company structures. The 30 April 2026 filing deadline for 2026/27 has now passed — but if you missed it, acting promptly is critical. This guide covers charges, reliefs, the Relief Declaration Return obligation, and how HMRC is currently enforcing compliance. Part of our property and land tax hub.
All figures sourced from HMRC's published ATED guidance on GOV.UK, updated March 2026 for the 2026/27 chargeable period (1 April 2026 to 31 March 2027).
Per HMRC's published ATED guidance on GOV.UK, ATED applies to any non-natural person (NNP) that holds a UK residential property valued at more than £500,000. An NNP means:
ATED does not apply to properties owned by individuals in their personal name — even if the individual is a director or shareholder of a company that holds other properties. Each property is assessed individually based on its value at the relevant valuation date.
HMRC's complete ATED guidance, the online return service, and the Relief Declaration Return process are all published at GOV.UK: Annual Tax on Enveloped Dwellings — the basics (last updated March 2026).
Per HMRC's published guidance (updated March 2026), ATED charges increase annually in line with the Consumer Price Index (CPI). The 2026/27 charges represent a CPI uplift from the 2025/26 figures. The charge is a flat annual amount per band — not a percentage of value. A property worth £600,000 and a property worth £950,000 carry the same annual charge because both fall within the same band.
| Property value at 1 April 2022 | Annual ATED charge (2026/27) |
|---|---|
| £500,001 – £1,000,000 | £4,600 |
| £1,000,001 – £2,000,000 | £9,450 |
| £2,000,001 – £5,000,000 | £32,050 |
| £5,000,001 – £10,000,000 | £75,050 |
| £10,000,001 – £20,000,000 | £150,650 |
| Above £20,000,000 | £303,450 |
Source: HMRC GOV.UK — Annual Tax on Enveloped Dwellings: the basics (updated 4 March 2026). Charges are based on the property's value at the relevant valuation date — 1 April 2022 for properties owned on or before that date, or the acquisition date for properties acquired after 1 April 2022. The next revaluation date is 1 April 2027.
For the 2026/27 chargeable period (1 April 2026 – 31 March 2027), returns and any cash charge were due by 30 April 2026. If you missed this deadline — whether for a full ATED charge or a Relief Declaration Return — automatic penalties have already been triggered. The priority now is to file immediately and contact HMRC. Our expert matching service can help you manage late filing and negotiate penalties.
Per HMRC's published guidance, several reliefs can reduce the ATED charge — in many cases to zero. However, reliefs are not automatic. You must actively claim them by filing a Relief Declaration Return by the 30 April deadline each year, even when the result is a nil liability. This is the most commonly missed ATED obligation.
Per HMRC's published guidance, if your company holds multiple properties that all qualify for the same type of relief — for example, all are let commercially — you can submit a single Relief Declaration Return covering all of them. This simplifies compliance for companies with large portfolios of corporate rental properties above the £500,000 threshold.
Per HMRC's published guidance, ATED returns must be submitted using HMRC's ATED online service. Returns for the 2026/27 period must be submitted between 1 April 2026 and 30 April 2026 for existing properties. For properties acquired during the year, returns are due within 30 days of acquisition.
HMRC's ATED online service is accessible at GOV.UK: Annual Tax on Enveloped Dwellings. You will need your company's Government Gateway credentials and the property's 1 April 2022 valuation to hand.
Per HMRC's published guidance, ATED uses a 5-year revaluation cycle. For the current period (2023/24 through 2027/28), the relevant valuation date is 1 April 2022. Properties held on or before that date must use the 1 April 2022 open-market value. Properties acquired after 1 April 2022 use the acquisition price as the valuation date.
The next revaluation date is 1 April 2027, which will apply from the 2028/29 chargeable period. If your property has increased significantly in value since 2022, it may move into a higher ATED band from 2028 — or come within scope for the first time if it was previously worth less than £500,000 at the 2022 date but has since crossed the threshold.
Per HMRC's published guidance, if you are uncertain which ATED band your property falls into, you can apply to HMRC for a Pre-Return Banding Check before submitting your return. HMRC typically responds within 30 working days. This process is particularly useful for properties near a band boundary — where the difference in annual charge can be significant (e.g. £9,450 vs £32,050 around the £2m threshold).
Per HMRC's published guidance, penalties for failing to file an ATED return apply automatically — regardless of whether any cash tax is owed. A company that qualifies for full commercial letting relief but fails to file a Relief Declaration Return faces the same penalty structure as a company that owes cash tax.
| Penalty event | Penalty amount |
|---|---|
| Filing up to 3 months late | £100 automatic penalty |
| Filing 3–6 months late | £200 additional penalty |
| Filing more than 6 months late | The greater of £300 or 5% of the ATED liability |
| Late payment of cash charge | 5% surcharge after 30 days, then further surcharges |
| Inaccurate return (careless) | Up to 30% of potential lost revenue |
| Inaccurate return (deliberate) | Up to 100% of potential lost revenue |
Per ICAEW's guidance on the 2026 ATED deadline, HMRC has recently increased scrutiny of ATED returns as part of a broader one-to-many campaign targeting corporate property owners. If you have missed a filing deadline, act promptly — our expert matching service can connect you with an ATED specialist to manage the late filing process and negotiate penalties where possible.
ATED is one of the most commonly missed property tax obligations in the UK — particularly for corporate landlords who qualify for full relief but don't realise they still need to file. Our matching service connects you with specialists who manage ATED compliance regularly.
Find an ATED specialist →Answers to the most frequently asked ATED questions, sourced from HMRC's published guidance.
Free HMRC-sourced guidance on ATED charges, reliefs and filing obligations. For missed deadlines, penalty mitigation and complex valuations, match with a specialist.
Guidance, not advice. Based on HMRC's published guidance for 2026/27 (GOV.UK, updated March 2026). Always verify at GOV.UK before filing. ATED is a complex area — always obtain professional advice for corporate property structures.
