The deadline for submitting the 2026/27 Annual Tax on Enveloped Dwellings (ATED) return is fast approaching. If your company holds UK residential property valued over £500,000, you may need to take action before 30 April 2026.
Who does ATED apply to?
ATED applies to certain ‘Non-Natural Persons’ (NNPs), including:
- UK or non-UK companies
- Partnerships with one or more corporate members
- Collective investment vehicles
These rules apply where such entities own UK residential property valued above £500,000.
Key dates to note
- The ATED chargeable period runs from 1 April 2026 to 31 March 2027
- Returns and any payment due must be submitted to HMRC by 30 April 2026
- Properties acquired or that come within the ATED charge during the year may require a return within 30 days
Reliefs and Exemptions
Even if you qualify for relief, a return must be submitted to claim relief. Common reliefs and exemptions include:
- Commercial letting (no connected party occupation)
- Bona fide property development businesses
- Charitable use
- Public use for at least 28 days per year
For property developers, it’s important to consider submitting a protective relief declaration if a dwelling is likely to be completed and come into existence during the year.
Valuation reminder
The current ATED valuation date is 1 April 2022 (or the acquisition date if later), and this will apply through to the 2027/28 chargeable period. While not mandatory, obtaining a professional valuation is strongly recommended to ensure accuracy.
Filing and submission
All ATED returns must be submitted via HMRC’s online ATED service. We can support you throughout this process, acting as your ATED agent, handling communications and submissions on your behalf.
Penalties for late submission
- Penalties apply for both late returns and late payments
- Interest will accrue on late payments
- Failing to file, even when relief applies, can still trigger penalties