Answers · UK 2025/26
What properties are subject to ATED in 2026?
The Annual Tax on Enveloped Dwellings (ATED) applies to residential properties in the UK worth more than £500,000 that are owned by a company, partnership with a corporate member, or collective investment scheme. The annual charge ranges from £4,150 for properties between £500k-£1m up to £269,450 for properties over £20m.
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The Annual Tax on Enveloped Dwellings (ATED) applies to UK residential properties worth more than £500,000 that are held by a company, a partnership with at least one corporate member, or a collective investment scheme. The annual charge for 2026/27 ranges from £4,150 (property valued £500,001-£1m) up to £269,450 (property valued over £20m). Reliefs are available for properties let to third parties on commercial terms, properties available for public access, property developers, and financial institutions, but the relief must be actively claimed on an ATED return filed by 30 April each year. Failure to file or pay ATED correctly results in penalties. The tax was introduced in 2013 to discourage "enveloping" properties in companies to avoid SDLT.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.