Annual Tax on Enveloped Dwellings ATED 2026

Annual Tax on Enveloped Dwellings ATED: Rates from 01/04/2026. 

Annual Residential Property Tax Explained

Officially known as an Annual Tax on Enveloped Dwellings (ATED), it is a yearly tax on high value property.

This annual residential property tax, technically a ‘mansion tax’ or wealth tax on high value properties in the UK owned not by people directly but owned by corporate entities.

What is a corporate entity? 

A collective investment scheme (unit trust, investment trust, OEIC, bond etc), a limited company or a partnership (if one of the partners is a company).

Why has this tax started? 

It has started because many wealthy UK and overseas property owners buy properties in this way.  By setting up a corporate structure, they are able to sell on their property possibly without liability to taxes because it not the property that is sold, it is the shares that are transferred.

• Stamp Duty – the high rate of Stamp Duty 12% for properties over £1.5m is saved - although this has now been blocked with higher Stamp Duty payable by residential property purchases by 'non natural' persons - see Stamp Duty Rates

• Capital Gains Tax – if “business” is sold, rollover relief is available where no capital gains tax is payable if profits in a business are reinvested back into another “business”.

When did ATED start? 1 April 2013

How much is ATED?  It is a yearly flat rate tax payable in property value bands:

What if I own for part of the year?  If you own for part of the year, you will pay a proportion of the ATED.

Exemptions

• Historic houses etc.  where the property is owned by a corporate structure and is available for public access and viewing at least 28 days per year.

• Farmland residential property owned by a corporate structure where a worker lives in the property.

• Charitable property.

• Property bought for development.

How is a property valued?

• The property must have been valued at market selling price as at 1 April 2012 and then every 5 years i.e.  2017, 2022, 2027, 2032, 2037 etc.

• ATED payable is then based upon the scale above.

When is ATED payable?

• 1 April valuation, tax is payable within the month i.e.  30 April of the same year and so on.

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