Annual Tax on Enveloped Dwellings

What is ATED?

ATED applies to certain businesses and investment structures - known as Non-Natural Persons (NNPs) - that own UK residential properties worth more than £500,000. These include:

• Companies
• Partnerships with a company as a member
• Collective investment scheme managers

If you own property personally, ATED and ATED related Capital Gains Tax (CGT) do not apply. Reliefs may also be available if the property is used for commercial purposes.

What’s Changing?

From 1 April 2026, ATED charges will increase by 3.8%, in line with the September 2025 CPI.

Here are the new annual charges based on property value:

• £500,001 – £1m: £4,600
• £1m – £2m: £9,450
• £2m – £5m: £32,200
• £5m – £10m: £75,450
• £10m – £20m: £151,450
• Over £20m: £303,450

Key Deadlines

For properties within ATED on 1 April 2026, both the return and payment are due by 30 April 2026 (covering 1 April 2026 – 31 March 2027).

If you acquire a property after 1 April that falls under ATED, payment is due within 30 days of acquisition.

We know tax rules can feel overwhelming, but we’re here to make them simple and stress free. If you think ATED might apply to you - or you’re unsure - get in touch. We’ll guide you through the process, check for reliefs, and make sure everything is filed on time.