Update for 2026/2027
Background
The Annual Tax on Enveloped Dwellings (ATED) filing window for 2026/2027 is fast approaching. Broadly speaking, the ATED regime applies to residential properties held in a corporate vehicle valued at more than £500,000 as at 1 April 2022. For property acquired after 1 April 2022, the property valuation is based on its acquisition cost.
For the 2026/2027 tax year, ATED returns must be submitted and the annual charge paid between 1 April 2026 and 30 April 2026. The amount due and any reliefs available will depend on your circumstances.
Annual Charges
The chargeable amounts for 2026/2027 are as follows:
Property Value Annual Charge
More than £500,000 to £1 million £4,600
More than £1 million to £2 million £9,450
More than £2 million to £5 million £32,200
More than £5 million to £10 million £75,450
More than £10 million to £20 million £151,450
More than £20 million £303,450
Reliefs
Certain reliefs from the ATED charge are available but they must be claimed by filing an ATED Relief Declaration Return in the filing window.
Common reliefs are available for the following properties:
- Property rental businesses
- Trading or development business
- Properties open to the public
- Farmhouses occupied by a working farmer
For further advice on the above, please contact Robert Drysdale or any other member of the Wealth Planning Team.
