ATED: as HMRC fines continue to rise, understanding your business liability and ensuring compliance is vital
6 January 2026 • HMRC, Warrener Stewart Edinburgh, Warrener Stewart London
ATED is an annual tax payable by companies that own UK residential property valued at more than £500,000. When the scheme was introduced in 2013, that threshold stood at £2 million – a clear indication that HMRC views company-owned dwellings as a valuable source of additional revenue.
Today, with limited communication from HMRC and no reminders for registered businesses – coupled with strict registration and filing criteria – increasing numbers of companies are either missing out on valuable reliefs and exemptions or being fined for non-compliance, often facing escalating penalties.
Complex criteria and cunning penalties
Many companies that own residential properties are entitled to relief from the annual charge, which is based on property value bands. Each property must be revalued on a fixed five-year cycle, to determine whether it remains in the same value band. However, even companies which qualify for one of the reliefs and are not subject to an ATED charge are still required to file annual ATED returns.
Whenever a business acquires a UK residential property worth at least £500,000, it must be registered and an ATED return filed within 30 days. Missing this deadline – even unknowingly – will trigger penalties that continue to increase over time, potentially reaching significant sums even if no tax is due.
In addition, annual returns must be started, filed – and paid – within a strict 30-day window at the start of each financial year, leaving little margin for error and a high risk of further fines.
Protect your business from unnecessary penalties
Whether or not your company is liable for ATED, acting now is vital to maintain compliance and avoid unwelcome penalties and scrutiny from HMRC. Our experts are here to help.
To find out more about ATED and our corporation tax services, contact us on 020 7731 6163 or email info@warrenerstewart.com
