ATED Charge Calculator 2026/27: What Companies Pay on Residential Property
Last updated 24 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
The Annual Tax on Enveloped Dwellings (ATED) is an annual charge on companies owning UK homes worth over £500,000. For 2026/27 it ranges from £4,600 (£500k–£1m) to £303,450 (over £20m). Most landlords letting commercially to third parties can claim relief and pay nothing — but must still file by 30 April.
If you hold residential property in a company — increasingly common for landlords — ATED is a trap worth knowing. It can hit company-owned homes over £500,000 with a hefty annual charge, and even when relief applies, you must file a return or face penalties.
The calculator above and the band table below show the 2026/27 charges. This guide explains who pays, who’s exempt, and the all-important deadline. For the deadline detail, see the ATED deadline calendar.
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Company Rental Profit Calculator
Estimate your company's rental profit alongside its ATED position for 2026/27.
Result
- Taxable profit (rent − expenses)
- £11,200
- Income Tax at 40%
- £4,480
- Less mortgage interest credit (20%)
- − £1,000
- Tax due on this property
- £3,480
- Income after tax
- £7,720
ATED 2026/27: £4,600 (£500k–£1m) up to £303,450 (£20m+). Relief usually applies for commercial lets. Estimate only.
ATED charges for 2026/27
ATED applies to a company (or certain partnerships and collective investment schemes) owning a UK dwelling worth more than £500,000. The charge depends on the property’s value band, and rose by 3.8% from 1 April 2026 in line with September 2025 CPI.
| Property value | Annual charge 2026/27 |
|---|---|
| £500,001 – £1 million | £4,600 |
| £1,000,001 – £2 million | £9,450 |
| £2,000,001 – £5 million | £32,200 |
| £5,000,001 – £10 million | £75,450 |
| £10,000,001 – £20 million | £151,450 |
| Over £20 million | £303,450 |
The charge is based on the property’s value at set valuation dates (revalued every 5 years), not what you originally paid. Check your banding if a property is near a threshold.
The reliefs most landlords can claim
Here’s the good news for ordinary company landlords: if the property is let commercially to third parties (not to anyone connected with the company), you can usually claim relief that reduces the ATED charge to nil.
But relief isn’t automatic — you must claim it on a Relief Declaration Return. Miss the filing and HMRC charges penalties even though no tax was due.
- Let to third parties on a commercial basis — relief available
- Property developers and traders holding stock — relief available
- Properties open to the public, farmhouses, employee accommodation — relief may apply
- Occupied by a connected person (e.g. a director) — no relief, full charge due
The classic mistake: a company lets its £600,000 flat commercially, owes £0 ATED, but forgets to file the Relief Declaration Return — and gets a penalty. Relief still needs a return.
The 30 April deadline
ATED runs on an unusual calendar: the chargeable period is 1 April to 31 March, and you must file the return — and pay any charge — by 30 April at the start of that period. So for 2026/27, returns and payment are due by 30 April 2026.
That’s far earlier than other taxes, which catches new company landlords out. Diarise it the moment your company acquires a residential property over £500,000.
Never miss an ATED return
LandlordTaxAi flags ATED exposure on your company-held properties and the 30 April deadline — so you claim relief on time and avoid needless penalties.
See how it worksA worked example
A company owns a £750,000 flat. In one scenario it’s let commercially to a tenant; in another, a director lives in it (2026/27).
| Property value band | £500k–£1m → £4,600 charge |
| Let commercially to third party | Relief claimed → £0 (but must file) |
| Occupied by a director (connected person) | No relief → £4,600 due |
| Filing deadline either way | 30 April 2026 |
Same flat, very different outcomes: a genuine commercial let pays nothing (with a return), but director occupation triggers the full £4,600 ATED charge.
Frequently asked questions
What is ATED?
The Annual Tax on Enveloped Dwellings — an annual charge on companies owning UK residential property worth over £500,000.
How much is ATED for 2026/27?
From £4,600 for properties worth £500k–£1m, rising to £303,450 for those over £20m. Charges rose 3.8% from 1 April 2026.
Do buy-to-let companies have to pay ATED?
Usually not in cash — letting to third parties commercially qualifies for relief reducing the charge to nil. But you must still file a Relief Declaration Return.
When is the ATED deadline?
Returns and payment are due by 30 April at the start of the period — so 30 April 2026 for the 2026/27 year.
What if a director lives in the property?
Occupation by a connected person means no relief, so the full ATED charge for the value band applies.
What happens if I don’t file?
HMRC charges penalties for a late return even if relief means no tax is due — so always file on time.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics; https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances; https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-returns. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.