Annual Tax on Enveloped Dwellings (ATED) applies when certain companies or similar entities own UK residential properties valued at more than £500,000. It is designed to ensure that residential property held within corporate structures is reported properly each year, even if no tax is ultimately due. The chargeable period runs from 1 April to 31 March, and where a property is held on 1 April, the ATED return must be submitted by 30 April of the same year. For the upcoming period covering 1 April 2026 to 31 March 2027, returns must therefore reach HMRC by 30 April 2026. ATED charges for this cycle are based on the valuation as at 1 April 2022.
For newly built properties, the timing works slightly differently. The ATED return is due within 90 days of whichever happens first: the date the property becomes a dwelling for council tax purposes or the date it is first occupied. This often catches property investors off guard, as the requirement can arise before a property is marketed or sold.
Although ATED can result in a tax charge, there are several reliefs and exemptions which may significantly reduce or remove the liability. These include situations where the property is used for commercial letting, property development, or is made available to the public. However, even if full relief applies, an ATED return still needs to be filed each year. Each property requires its own individual return, so organisations with multiple residential properties will need to ensure they track and submit each one separately.
Emma Fisher, Senior Corporate Tax Manager at Burgis & Bullock, comments: “ATED catches more organisations than people realise, especially when property values increase or when new developments reach completion. Even where no tax is due, the annual reporting requirement remains, so it’s important for companies to stay on top of their filing deadlines.”
If you or your business holds residential property within a company or partnership structure, Burgis & Bullock can guide you through the reporting requirements and help ensure all relief opportunities are fully explored. Contact your local B&B office https://www.burgisbullock.com/contact-us/
Emma Fisher, Senior Corporate Tax Manager at Burgis & Bullock.
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