ATED is an annual charge on UK residential property owned by non-natural persons — companies, partnerships with corporate members, and collective investment schemes. It has applied since 2013 and the current threshold is £500,000. If you hold UK residential property via the above structures valued over £500,000, you may be required to file an ATED return.
ATED applies using a five year valuation cycle. For the current cycle, properties owned on or before 1 April 2022 must use 1 April 2022 as their valuation date. Properties acquired after this date must use the date of acquisition. The valuations must reflect open market value on a willing buyer and must be supported and documented should HMRC challenge the valuation.
The charge
Returns for the chargeable period 1 April 2026 to 31 March 2027 must be filed and paid between 1–30 April 2026. If a property is acquired after 1 April, The ATED return must be completed within 30 days of acquisition. The charge is based on the banding which the property falls within. The chargeable amounts for 1st April 2026 – 31 March 2027 are as follows:-
| Property Value (as at 1 April 2022 or acquisition) | 2026/27 ATED Charge |
| £500,000 – £1m | £4,600 |
| £1m – £2m | £9,450 |
| £2m – £5m | £32,200 |
| £5m – £10m | £75,450 |
| £10m – £20m | £151,450 |
| £20m+ | £303,450 |
Reliefs
Several reliefs can reduce the ATED charge to nil. The most important are:
● Property Rental Business Relief
The most widely used relief. Available where the property is let commercially to an unconnected third party at a market rent. The relief is lost entirely if any connected person — a director, shareholder, or their associates — occupies the property, even briefly.
● Property Developer / Trader Relief
Available where the property is held as trading stock for development and resale, provided no connected person occupies it.
● Employee Accommodation Relief
Where a trading company provides the property as accommodation for qualifying employees (not owner-directors with a material interest) in connection with their duties.
● Farmhouse Relief
Applies to a farmhouse occupied by a qualifying farm worker as their main residence.
Other reliefs are as follows:-
- If it is open to the public for at least 28 days a year
- repossessed by a financial institution as a result of its business of lending money
- acquired under a regulated home reversion plan
- owned by a registered provider of social housing or a qualifying housing co-operative
Claiming relief is not automatic and does not remove the obligation to file. A relief declaration return must be submitted every year, even if the ATED liability is nil. Failure to file even when relief is available carries the same penalty as a missed chargeable return.
Action required before 30 April 2026
- Identify all UK residential properties over £500,000 owned by any company or corporate structure.
- Confirm the correct valuation for each (1 April 2022 base, or acquisition date if later).
- Verify that relief conditions are currently being met — in particular, check for any connected person occupation.
- Instruct us to prepare and file all ATED and Relief Declaration Returns before 30 April 2026.
If you’re unsure whether ATED applies to your property or want to ensure you remain fully compliant ahead of the 30 April deadline, our team can help. Get in touch today to review your position, confirm any available reliefs, and ensure all returns are prepared and filed accurately and on time.