Glossary · UK
What is Annual Tax on Enveloped Dwellings (ATED)?
An annual charge on UK residential property worth over £500,000 owned by companies or other non-natural persons. 2026/27 bands range from £4,400 to £269,450.
Full Definition
Annual Tax on Enveloped Dwellings (ATED) is a tax charged on UK residential properties worth more than £500,000 that are owned by non-natural persons, principally companies, partnerships with corporate members, and certain collective investment schemes. Properties are described as "enveloped" because they are held inside a corporate wrapper. ATED is charged annually based on the property's value as assessed at the most recent valuation date (currently 1 April 2022 for the 2023-2028 cycle). For 2026/27, the annual charges range from £4,400 for properties valued at £500,001-£1 million up to £269,450 for properties valued over £500 million, with several bands in between. A return must be filed and payment made within 30 days of the start of the chargeable period (i.e. by 30 April each year, or within 30 days of acquisition). Various reliefs are available that can reduce or eliminate the charge, including property rental businesses, property developers, property traders, farmhouses occupied by a farm worker, and properties open to the public. These reliefs must be claimed on the ATED return. The charge was introduced in 2013 partly to deter the use of corporate wrappers to avoid Stamp Duty Land Tax on subsequent sales, as a sale of shares does not trigger SDLT.