Annual Tax on Enveloped Dwellings
Stop paying ATED.
Reliefs, exemptions and the right structure can take your ATED bill to nil, even if you or your family live in the home.
A company, partnership or fund that owns a UK home worth over £500,000 can pay up to £303,450 a year. A specialist tax Barrister finds the way out of the charge and helps you claim it.
Fixed fee in writing before any work starts
ATED charges, 1 April 2026 to 31 March 2027
Per property, per year, before any relief.
| Property value | Annual charge |
|---|---|
| More than £500,000 up to £1 million | £4,600 |
| More than £1 million up to £2 million | £9,450 |
| More than £2 million up to £5 million | £32,200 |
| More than £5 million up to £10 million | £75,450 |
| More than £10 million up to £20 million | £151,450 |
| More than £20 million | £303,450 |
Source: HMRC. Charges rise each April in line with inflation.
Even if you live there
Living in the home does not mean you have to pay
The standard reliefs do not cover a home lived in by the owner or their family, so many owners assume they have to pay ATED every year. Often they do not. The answer usually lies in how the property is held.
Review how the home is held
Who owns the company, who lives in the property and on what terms. Small facts change the answer.
Find the route out of the charge
Restructuring the ownership, or taking the home out of the company altogether, where that works for you.
Weigh the other taxes
Moving a home can bring Stamp Duty Land Tax, Capital Gains Tax and Inheritance Tax into play. You see the whole picture before deciding.
Find out whether your home can come out of ATED.
Get a free fixed fee quoteDoes it apply to you?
Who gets caught by ATED
ATED applies when all four of these are true. It reaches far beyond the offshore companies it was aimed at.
- It is a dwelling: a house or flat used or suitable for use as a home.
- It is in the UK, wherever the owning company is based.
- It is worth more than £500,000, valued at 1 April 2022 or when acquired if later.
- A company, a partnership with a corporate member, or a collective investment scheme owns it, wholly or partly.
Families with offshore companies
A UK home bought through a Jersey, Guernsey, BVI or other company, often before ATED existed.
Family investment companies
Rental relief is lost while a director, shareholder or relative lives in the property.
Developers and traders
Unsold stock, a lived-in show flat or a director moving in can put a unit back in charge.
Employers
Staff homes can qualify, but not for people with a significant stake in the business.
Hotels, estates and farms
Holiday lets, historic houses and farmhouses each have their own conditions to meet.
Charities, funds and trustees
Charities, housing providers, unit trusts and trusts with underlying companies.
Reliefs and exemptions
Reliefs we can help you claim
Where a relief applies there is no ATED to pay, but it must be claimed each year. Charitable companies, some public bodies and bodies established for national purposes are exempt where every condition is met.
- Let to unconnected tenants on a commercial basis
- Held for development and resale, or as trading stock
- Open to the public at least 28 days a year
- Homes for qualifying employees of a trade
- Farmhouses occupied by farm workers
- Repossessions, home reversion plans and social housing
Where owners pay more than they should
No return because no tax was due
A relief still has to be claimed on a Relief Declaration Return each year. Late nil returns can still attract penalties.
A family member moves in
Occupation by someone connected with the owner can switch off a relief for that period, and sometimes earlier ones.
The wrong valuation band
Each band jump costs thousands a year. Values near a threshold deserve a proper look.
The 1 April 2027 revaluation
Every property is revalued at 1 April 2027, which sets the band from the 2028-29 return.
Returns are due by 30 April each year, within 30 days of buying an affected home, and within 90 days for a new build. Where returns were missed or relief was claimed wrongly, a Barrister can advise on putting it right with HMRC and challenge penalties, including at the First-tier Tribunal (Tax Chamber).
Does your case qualify for Direct Access?
Tell us about your matter and we'll confirm whether you can instruct a Barrister directly, then match you with the right specialist.
Prefer to talk? Call 0800 302 9921. Lines open 8am to 8pm, same-day callback.
ATED questions
We live in the property ourselves. Can you still help?
Often, yes. The standard ATED reliefs do not cover a home lived in by the owner or their family, which is why many people assume they are stuck with the charge. A specialist tax Barrister looks at how the property is held and can often find a route out, for example by restructuring or by taking the home out of the company. Every route has other tax consequences, so you get advice on the whole position before you decide.
What is ATED?
The Annual Tax on Enveloped Dwellings is a yearly charge on UK homes worth more than £500,000 owned wholly or partly by a company, a partnership with a corporate member, or a collective investment scheme. For the year to 31 March 2027 it runs from £4,600 to £303,450 a year, depending on the value.
If a relief applies, do I still need to file?
Yes. Reliefs are not automatic. You must submit a Relief Declaration Return for each chargeable period, normally by 30 April. Missing it can lead to penalties even though no tax is due.
We have not filed ATED returns for several years. What now?
Get advice before you contact HMRC. The right route depends on whether tax was due, whether reliefs would have applied, how many years and properties are involved, and the time limits. A Barrister can advise on the strongest way to put it right, including whether penalties can be challenged.
Can a Barrister represent us against HMRC?
Yes. Through Direct Access you can instruct a specialist tax Barrister without a Solicitor, for advice, HMRC correspondence and reviews, and representation at the First-tier Tribunal (Tax Chamber). Your accountant can stay involved throughout.
How much does it cost?
You receive a single fixed fee in writing before any work starts. The quote is free and there is no obligation to proceed.
This page is general information, not advice on your circumstances. Rates and rules are taken from HMRC guidance for the 2026-27 chargeable period.
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Find out whether your home can come out of ATED.
Tell us about the property and who lives there. A specialist tax Barrister will look at the options, and we will send a fixed fee in writing. No obligation.