ATED (Annual Tax on Enveloped Dwellings)
Companies owning UK dwellings worth over £500,000 face a flat annual ATED charge — unless a relief (such as genuine commercial letting) applies.
Who it applies to
Companies, partnerships with a corporate member, and collective investment schemes ('non-natural persons') owning a UK residential dwelling valued over £500,000.
How it affects your return
ATED is a fixed annual charge by value band (below). Most genuine buy-to-let held in a company qualifies for relief and pays nothing — but you must still file an ATED return each year to claim the relief. Miss it and penalties apply.
Worked example
| Property value | Annual charge |
|---|---|
| £500,001 – £1,000,000 | £4,600 |
| £1,000,001 – £2,000,000 | £9,450 |
| £2,000,001 – £5,000,000 | £32,200 |
| £5,000,001 – £10,000,000 | £75,450 |
| £10,000,001 – £20,000,000 | £151,450 |
| £20,000,001 – above | £303,450 |
ATED bands for 1 Apr 2026 - 31 Mar 2027 (from tax-config, verified on gov.uk). Genuine commercial lets usually qualify for relief and pay nothing, but must still file a return.
Common mistakes
- Not filing an ATED relief return because you assume the let exempts you automatically.
- Forgetting the return deadline of 30 April for property held at the start of the period.
- Ignoring ATED when comparing personal vs company ownership of higher-value flats.
Investor action checklist
- If a company holds a dwelling over £500,000, file an ATED return every year.
- Claim the letting relief where the property is genuinely let commercially.
- Diarise the 30 April filing deadline.
Disclaimer. This page is for general education only and is not tax, legal, mortgage, or investment advice. UK tax rules change and depend on your personal circumstances. Always consult a qualified UK tax adviser before making a decision.
Disclaimer. The information on Brick.sg is for general education and market research only. It is not financial, investment, tax, mortgage, or legal advice. Property investments involve risk, and returns are not guaranteed. Always seek independent professional advice before buying UK property.