Hold a UK home through a company or offshore structure? Work out the annual ATED charge for 2026/27 — and find out whether a relief could remove it.
2026/27 charges. Reliefs may reduce the charge to nil, but an ATED return is still required. A tax adviser confirms your position.
The Annual Tax on Enveloped Dwellings is a yearly charge on UK residential property worth over £500,000 that is held inside a company, a partnership with a corporate member, or a collective investment scheme — including offshore structures. The charge is a flat amount based on the property’s value band, not a percentage.
Crucially, several reliefs can reduce the charge to nil — for example where the property is let commercially to a third party, or held by a property developer or trader. But the relief must be claimed: an ATED return is still due each year, and the deadline is 30 April. Many enveloped properties pay ATED unnecessarily, or face penalties for late returns.
Since the 2025 changes to the non-dom and inheritance tax rules, the case for holding UK homes in a corporate envelope is worth revisiting entirely. Property Tax Optimisers reviews the structure, claims available reliefs, and models whether de-enveloping makes sense.