ATED is an annual charge on residential properties worth more than £500,000 owned by non-natural persons (typically limited companies). Introduced by the Finance Act 2013 and extended to properties over £500,000 from 2016, ATED catches many buy-to-let limited company landlords -- though the property rental business relief exempts most commercial lettings provided an annual return is filed.
ATED filing deadline: 30 April each year
The ATED return for 2026/27 (period 1 April 2026 to 31 March 2027) must be filed by 30 April 2026. Even where the rental business relief reduces the ATED charge to nil, a return must still be filed. Automatic £100 penalty for missing the deadline -- daily penalties follow at 3 months.
Who must file an ATED return?
- Non-natural person: company (UK or overseas), collective investment scheme, or corporate partnership
- Residential dwelling in England, Scotland, or Wales
- Property value above £500,000 at the relevant valuation date
- First-year acquisition: file within 30 days of the date the property first became an ATED property
2026/27 annual charge bands
- £500,001--£1 million: £4,450 per year
- £1 million--£2 million: £9,150 per year
- £2 million--£5 million: £30,550 per year
- £5 million--£10 million: £71,500 per year
- £10 million--£20 million: £143,550 per year
- Over £20 million: £287,500 per year
Property rental business relief
- Reduces the ATED charge to nil where the property is let at arm's length to unconnected third-party tenants at a market rent
- Not automatic: must be claimed on the annual ATED return
- Connected persons (director, director's family, shareholders) using any part of the property disqualifies the relief for that period
- Short void periods between tenancies do not disqualify -- provided the property is actively marketed for letting throughout
- 15% SDLT flat rate: same rental business relief conditions apply to also relieve the 15% SDLT charge on acquisition of ATED-scope properties