Glossary · UK
What is Annual Tax on Enveloped Dwellings (ATED)?
An annual charge on UK residential properties worth over GBP 500,000 owned by companies or certain partnerships.
Full Definition
The Annual Tax on Enveloped Dwellings (ATED) is an annual charge payable by companies, partnerships with a corporate member, and collective investment schemes that own UK residential property valued at more than GBP 500,000. The 2026/27 charges range from GBP 4,150 (properties valued GBP 500,001-GBP 1m) to GBP 269,450 (properties valued over GBP 20m). ATED was introduced in 2013 to discourage "enveloping" residential property in a company to avoid Stamp Duty Land Tax (SDLT). Reliefs are available -- including for property let commercially to third parties, property open to the public, and property under development -- but must be actively claimed on an ATED return filed by 30 April each year. Failure to file results in automatic penalties; failure to pay on time results in interest and surcharges. ATED is separate from and in addition to any SDLT or CGT liability on the property.