Annual Tax on Enveloped Dwellings
Source: gov.uk (2025-12-02)

Find out about Annual Tax on Enveloped Dwellings (ATED), what you need to pay and how to appoint an agent or adviser to act on your behalf.

You must revalue your property every 5 years in line with Annual Tax on Enveloped Dwellings (ATED) legislation. You must do this for the 5 chargeable periods from 2023 to 2024.

If you acquired a property:
- on or before 1 April 2022 — use 1 April 2022 as the revaluation date
- after 1 April 2022 — use the date you acquired it as the valuation date
Overview

ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000.

You’ll need to complete an ATED return if your property:
- is a dwelling — find out the meaning of ‘dwelling’ in the next section
- is in the UK
- £2 million (for returns from 2013 to 2014 onwards)
- £1 million (for returns from 2015 to 2016 onwards)
- £500,000 (for returns from 2016 to 2017 onwards)
- company
- partnership where any of the partners is a company
- ­collective investment scheme — for example a unit trust or an open ended investment vehicle
Returns must be submitted on or after 1 April in any chargeable period.

There are reliefs and exemptions (https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-reliefs-and-exemptions) from the tax, which may mean you do not have to pay.

Meaning of ‘dwelling’

Your property is a dwelling if all or part of it is used, or could be used, as a residence, for example a house or flat. It includes any gardens, grounds and buildings within them.

Find out about valuing different types of properties (https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-pre-return-banding-checks) for example mixed use, more than one dwelling and multiple interests in properties.

Some properties are not classed as dwellings. These include:
- hotels
- guest houses
- boarding school accommodation
- hospitals
- student halls of residence
- military accommodation
- care homes
- prisons
Section 19 of the ATED technical guidance (https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance) explains more about the meaning of ‘dwelling’.

Value your property

To work out what you need to pay you’ll need to value your property using a valuation date (https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-pre-return-banding-checks).

In some circumstances you can also ask HMRC for a pre-return banding Check.

There are revaluation dates every 5 years from 1 April 2012.

For the 5 chargeable periods from 2023, the revaluation date is 1 April 2022.

You must revalue the properties you owned on or before 1 April 2022 using that date. If you acquire property after 1 April 2022, use the acquisition date.

What you need to pay

The amount you’ll need to pay is worked out using a banding system based on the value of your property.

Chargeable amounts for 1 April 2026 to 31 March 2027

Chargeable amounts for 1 April 2025 to 31 March 2026

Chargeable amounts for 1 April 2024 to 31 March 2025

Check chargeable amounts prior to 1 April 2024 (https://www.gov.uk/guidance/historic-chargeable-amounts-for-annual-tax-on-enveloped-dwellings).

Section 6 and 7 of the ATED technical guidance (https://www.gov.uk/government/publications/annual-tax-on-enveloped-dwellings-technical-guidance) tells you more about how to work out the charge if:
- you own the dwelling for part of a year
- you claim a relief for part of the year
You may also have to pay:
- Stamp Duty Land Tax (https://www.gov.uk/stamp-duty-land-tax) when you buy your property — there’s a higher rate for corporate bodies (https://www.gov.uk/guidance/stamp-duty-land-tax-corporate-bodies)
- ATED-related Capital Gains Tax or Corporation Tax (https://www.gov.uk/guidance/capital-gains-tax-on-high-value-residential-property) if you sell your property
Submit your return and pay

You can use the ATED online service (https://www.gov.uk/guidance/register-for-the-annual-tax-on-enveloped-dwellings-online-service) to submit your return and appoint an agent.

You’ll then need to pay anything you owe (https://www.gov.uk/pay-annual-tax-on-enveloped-dwellings).

Other ways to submit your return

If you’re unable to use the ATED online service, further information can be found in Section 3 of the ATED returns notice (https://www.gov.uk/government/publications/stld-annual-tax-on-enveloped-dwellings-ated).

Penalties and appeals

Penalties

You could be charged a penalty and interest if:
- you do not file (https://www.gov.uk/government/publications/compliance-checks-penalties-if-you-dont-file-income-tax-capital-gains-tax-and-annual-tax-on-enveloped-dwellings-returns-on-time-ccfs18a) your return on time
- you do not pay on time — find out more in CH155400 of the HMRC Compliance Handbook (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch155400)
- you submit an inaccurate return (https://www.gov.uk/government/publications/compliance-checks-penalties-for-inaccuracies-in-returns-or-documents-ccfs7a)
Appeals

If you disagree with an HMRC decision (https://www.gov.uk/tax-appeals) about your return, for example a penalty or determination, you may be able to challenge it by appealing.

You have 30 days from the date of the decision to write and tell HMRC the grounds on which you’re appealing.

Write to:

HM Revenue and CustomsATED Penalty AppealsStamp TaxesBX9 1HDUnited Kingdom

Get help

If you need any help or further information you can call the ATED Helpline (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/annual-tax-on-enveloped-dwellings-ated).