Does my property company have to pay ATED?
ATED is an annual tax on UK homes worth more than £500,000 owned by a company or certain partnerships. Homes let commercially to unconnected tenants are relieved from the charge, but the company must still file an ATED relief declaration return every year by 30 April, or face penalties.
Read more in our guide: Selling a portfolio held in a company or trust
ATED annual charges (2026 to 2027)
| Property value | Annual charge |
|---|---|
| £500,001 to £1m | £4,600 |
| £1m to £2m | £9,450 |
| £2m to £5m | £32,200 |
| £5m to £10m | £75,450 |
| £10m to £20m | £151,450 |
| Over £20m | £303,450 |
Who it applies to
ATED applies to a single dwelling worth over £500,000 held by a company, a partnership with a company member, or a collective investment scheme. Each flat or house is valued on its own. Values are fixed at set dates; the current one is 1 April 2022, with the next revaluation at 1 April 2027. Charges rise each April with inflation.
Relief for letting businesses
A property let on a commercial basis to unconnected tenants, or being prepared for letting, qualifies for property rental business relief, so no tax is payable. The relief is lost for any period when someone connected to the company, such as a director or their family, lives there, and there are clawback rules if that happens within three years.
The annual return
Even when relief removes the tax, a relief declaration return is due by 30 April at the start of each chargeable period, and within 90 days for property bought during the year. A single return can cover all properties claiming the same relief. Late filing penalties apply even when no tax is due, which catches out many limited company landlords.
ATED when selling
Buyers of company-held property, or of the company itself, check that ATED returns were filed. Missing returns are a liability that passes with the company in a share sale, so put the filing history in the data room. Company buyers of homes over £500,000 can also face the 17% flat rate of Stamp Duty unless the property is bought for a qualifying rental business.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
ATED is an annual tax on UK homes worth more than £500,000 owned by a company or certain partnerships. Homes let commercially to unconnected tenants are relieved from the charge, but the company must still file an ATED relief declaration return every year by 30 April, or face penalties.
No. Each dwelling is tested separately, so flats each worth £500,000 or less are outside ATED.
No. It was abolished from April 2019; company gains are now taxed through Corporation Tax.
The company makes its own valuation, ideally supported by a professional. HMRC offers a pre-return banding check for values close to a band edge.
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