ATED calculator, 2026/27

What ATED is and who it catches

Annual Tax on Enveloped Dwellings applies where a UK residential property worth more than £500,000 is owned by a company, a partnership with a corporate partner, or certain collective investment schemes, rather than by an individual directly. It was introduced to discourage holding personal homes inside corporate structures purely to avoid other property taxes, and the charge is payable annually for as long as the company owns the property, not just on acquisition.

The charge is a flat annual amount that steps up through value bands rather than a percentage of value, which means it can be a disproportionately large fixed cost for a company holding a single property near the bottom of a band. Directors who inherited a corporate property structure, or who are considering buying a residential investment through a company, need to factor this recurring cost into the numbers from day one.

How this is calculated

This calculator applies the 2026/27 ATED banding published by HMRC: £4,600 for £500,000–£1,000,000, £9,400 for £1,000,000–£2,000,000, £31,700 for £2,000,000–£5,000,000, £74,200 for £5,000,000–£10,000,000, £148,900 for £10,000,000–£20,000,000, and £303,450 above £20,000,000. Properties valued at £500,000 or below fall outside ATED entirely.

If a relief is available and correctly claimed, the calculator shows the charge reduced to nil, but this does not remove the compliance obligation. A relief declaration return still has to be submitted to HMRC by the filing deadline, and getting this wrong (or missing the deadline) can trigger penalties even though no tax was actually due.

Reliefs and practical planning points

The most commonly used relief is for properties let to unconnected third parties on a commercial basis with no provision for a connected person to occupy it. Property developers, property traders, and properties held for employees (in some circumstances) can also qualify for reliefs, each with their own conditions that need to be met throughout the chargeable period, not just at the point of claiming.

Because the property's value is revalued only periodically (currently every five years, with the next revaluation date fixed by HMRC), a company can move between bands even without buying or selling anything, simply because the market has moved. Reviewing the position each April, before the return is due, avoids last-minute surprises.

Does ATED apply to a property worth exactly £500,000?

No. ATED applies to residential properties valued at more than £500,000. A property valued at exactly £500,000 falls just outside the charge, though HMRC will expect the valuation to be robust and evidenced, particularly close to a band boundary.

Do I still need to file a return if relief reduces the charge to nil?

Yes. Where a relief applies, you must submit a relief declaration return rather than a full return, but a submission is still required by the deadline. Failing to file, even with no tax due, can lead to HMRC penalties.

How often is the property revalued for ATED?

Properties are revalued every five years on fixed dates set by HMRC, most recently 1 April 2022, next due 1 April 2027. Between revaluation dates, you generally use the valuation from the last revaluation date or acquisition, whichever is later.

Can ATED-related gains still arise on sale?

Historically ATED-related capital gains tax applied on disposal of ATED-liable properties, but this was folded into the wider non-resident and corporate CGT regime. A sale should still be reviewed for corporation tax on chargeable gains and any residual ATED-period apportionment.