ATED Annual Charge Calculator 2025/26
ATED applies to UK residential properties worth over £500,000 that are owned by non-natural persons (companies, collective investment schemes, partnerships with a corporate member). Reliefs are available for genuine property businesses.
Frequently Asked Questions
What is Annual Tax on Enveloped Dwellings (ATED)?
ATED is an annual charge on UK residential properties worth more than £500,000 that are owned by non-natural persons — companies, collective investment schemes, and partnerships with a corporate member. It was introduced in April 2013.
What are the ATED rates for 2025/26?
2025/26 annual charges: £500k–£1M = £4,400; £1M–£2M = £9,000; £2M–£5M = £30,550; £5M–£10M = £71,500; £10M–£20M = £143,550; over £20M = £287,500.
Who needs to file an ATED return?
Any non-natural person (company, corporate partnership) that holds a UK residential property worth over £500,000 at the relevant valuation date must file an annual ATED return by 30 April, even if they are claiming full relief.
What reliefs are available from ATED?
Main reliefs include: property rental business (let commercially to third parties), property developer (property being developed for resale), property trading business, social housing, and certain diplomatic/public bodies. Relief must be claimed via the return.
Does ATED apply to furnished holiday lets?
FHLs abolished from April 2025. Previously, commercial FHLs could qualify for property rental business relief. From April 2025, FHL properties are treated as ordinary property rentals and may still qualify for ATED rental relief if let commercially.
How often is ATED property revalued?
ATED uses periodic valuations on 5-year cycles. The current valuation date is 1 April 2022. Properties are valued at this date, then ATED bands are applied for all years until the next revaluation.
Is ATED in addition to other property taxes?
Yes. ATED is separate from SDLT (on acquisition), CGT (on disposal), and any other taxes. The 3% SDLT surcharge and 15% flat SDLT rate also apply to enveloped dwellings.
Can I avoid ATED by de-enveloping (taking property out of company)?
Yes. De-enveloping — transferring the property from the company to the individual shareholder — is a common strategy. However, de-enveloping itself triggers SDLT, CGT, and potentially income tax. Each case requires specialist advice.
Does ATED apply to empty or development-stage properties?
Properties under development may qualify for the property developer relief if the property is genuinely being developed for resale as part of a property trading business. Empty residential properties owned by companies are generally subject to ATED.
What happens if I miss the ATED return deadline?
Returns are due 30 April. Missing the deadline triggers automatic late filing penalties (£100 immediately, increasing penalties after 3/6/12 months). Payment is also due by 30 April — interest runs from the due date.
Is ATED deductible for Corporation Tax?
No. ATED is not deductible for Corporation Tax purposes. It is a non-deductible tax on companies holding residential property.
What CGT applies when an enveloped dwelling is sold?
The 15% flat SDLT rate applies on acquisition (not a cost relief), and when the company sells the property, CGT applies on the gain. Individual shareholders selling the company shares may pay CGT on the shares rather than the property directly.