ATED Rates 2026/27: The Bands, the Charges, and Worked Examples by Tier

If a company, partnership with a corporate member, or other non-natural person holds a UK residential dwelling worth more than £500,000, ATED is a flat annual bill that lands whether or not the property earns a penny. The charge is set by band, and the bands are unforgiving at the edges: a dwelling valued at £2,000,001 costs you £32,200 a year, while one valued at £1,999,999 sits a band lower at £9,450 a year with no taper in between. Get the band wrong, or miss the return, and you are exposed on a figure that repeats every single year.

The 2026/27 ATED bands took effect on 1 April 2026 and apply through to 31 March 2027. There are six bands and six annual charges, indexed by the Consumer Prices Index for the year ended September 2025, with the band thresholds themselves (£500,000, £1m, £2m, £5m, £10m, £20m) fixed in primary legislation. To check whether you are caught by the regime at all, see the ATED overview for companies; for the full regime (valuation rules, every relief, the return, penalties), see the complete 2026/27 ATED guide. Everything else below is the rate detail: the table, a worked example in every band, the day-apportionment maths for a mid-year acquisition, the Pre-Return Banding Check route for boundary cases, and the year-on-year delta against 2025/26.

2026/27 Bands and Annual Charges at a Glance

Band	Property value on the relevant valuation date	Annual charge 2026/27
Band 1	More than £500,000, up to £1m	£4,600
Band 2	More than £1m, up to £2m	£9,450
Band 3	More than £2m, up to £5m	£32,200
Band 4	More than £5m, up to £10m	£75,450
Band 5	More than £10m, up to £20m	£151,450
Band 6	More than £20m	£303,450

Three points decide which charge applies to you. The value tested is the open-market value at the most recent five-yearly revaluation date (currently 1 April 2022), or the acquisition date if you bought the dwelling after that. The charge is a flat per-band amount, not a marginal-rate calculation, so the band 3 figure of £32,200 applies in full to a £2,000,001 dwelling while a £1,999,999 dwelling stays in band 2 on the lower £9,450 charge, with no slice or taper between the two. And the bands are tested per dwelling, not per portfolio: hold a clutch of sub-threshold dwellings and you are outside ATED entirely, but hold one dwelling above its band threshold and you are in scope for that dwelling alone.

How the Annual Charge Is Indexed: The CPI Mechanic

Your charge climbs a little every year even if nothing about your property changes, because Section 99 Finance Act 2013 indexes the chargeable amounts by the Consumer Prices Index for the year ended in the September before the chargeable period. The 2026/27 figures reflect CPI for the year ended September 2025; the 2027/28 figures will reflect CPI for the year ended September 2026 and will be published by HMRC in November 2026. The band thresholds themselves are fixed and do not move with CPI; only the chargeable amounts at each band change year on year.

HMRC's published convention rounds the inflated amount to the nearest £50. The 2026/27 uplift is approximately 3.4 per cent across all six bands. In absolute terms:

Band	2025/26 charge	2026/27 charge	Year-on-year uplift
£500k to £1m	£4,450	£4,600	+£150
£1m to £2m	£9,150	£9,450	+£300
£2m to £5m	£31,050	£32,200	+£1,150
£5m to £10m	£72,700	£75,450	+£2,750
£10m to £20m	£145,950	£151,450	+£5,500
Over £20m	£292,350	£303,450	+£11,100

The percentage uplift is uniform; the absolute uplift compounds with band size. A portfolio of one dwelling in each band would pay £273,750 in 2025/26 and £286,750 in 2026/27, a £13,000 difference driven almost entirely by the top band.

Worked Examples by Band

Each example below assumes no ATED relief is available unless stated. Where a relief does apply, it reduces the chargeable amount to nil, but you still have to file the return.

Band 1: £500,001 to £1m, £4,600 Charge

Example 1.1. A UK Ltd holds a single £620,000 buy-to-let flat in Clapham, let to an unconnected tenant on commercial terms throughout 2026/27. ATED applies because the company is a non-natural person holding a single dwelling above £500,000. Property Rental Business Relief under s.133 FA 2013 reduces the chargeable amount to nil. The £4,600 band 1 charge is reported on the return but the relief is claimed line-by-line. Net ATED payable: £0; return still due by 30 April 2026.

Example 1.2. A family partnership with a corporate general partner holds a single £750,000 London pied-à-terre used by a connected director during business visits. No relief applies because the dwelling is occupied by a connected person. Net ATED payable: £4,600.

Example 1.3. An overseas company holds a £550,000 flat near the £500,000 boundary. The company commissions a RICS-registered valuation that confirms £550,000 and submits a Pre-Return Banding Check application in February 2026. HMRC confirms band 1. The company files a claim-only return claiming Property Rental Business Relief, supported by an unconnected commercial tenancy throughout the period. Net ATED payable: £0; return still due; PRBC reduces enquiry risk.

Band 2: £1m to £2m, £9,450 Charge

Example 2.1. A UK Ltd holds a £1.45m Kensington flat let commercially throughout the chargeable period. Property Rental Business Relief applies; the relief discipline is the s.1122 CTA 2010 connected-person test plus the commercial-terms requirement. Net ATED payable: £0. The rental property relief mechanics guide walks through the test in detail.

Example 2.2. An overseas company holds a £1.85m Belgravia flat occupied by the principal shareholder's family throughout 2026/27. No relief applies. The £9,450 charge is payable, the return is due by 30 April 2026, and Schedule A1 IHTA 1984 also exposes the shares to UK IHT on death of a non-long-term-resident shareholder. Net ATED payable: £9,450.

Example 2.3. A property-developer Ltd holds a £1.6m townhouse acquired as trading stock with a view to refurbishment and resale within 18 months. Property Developer Relief under s.138 FA 2013 reduces the charge to nil, subject to the 2-year-trade and trading-stock conditions. Net ATED payable: £0; return still due, relief claimed line-by-line.

Example 2.4. A UK Ltd acquires a £1.95m flat on 15 September 2026. The acquisition triggers a 30-day return (due 15 October 2026) covering days held in 2026/27. Days held = 16 September 2026 to 31 March 2027 = 197 days. Apportioned charge = (197 / 365) × £9,450 = £5,099. The 2027/28 return will be due 30 April 2027 and will carry the full £9,450 (or the 2027/28 equivalent once published) unless relief applies.

Band 3: £2m to £5m, £32,200 Charge

Example 3.1. A UK Ltd holds a £3.2m central London townhouse let commercially throughout the year to a corporate tenant. Property Rental Business Relief applies; documenting the commercial terms (open-market rent confirmed by a letting agent comparable, no concession to a connected party, security deposit held in line with PRS standards) is the practical relief discipline. Net ATED payable: £0.

Example 3.2. A non-resident company holds a £4.7m Mayfair mews house used as a family residence. No relief. Net ATED payable: £32,200. The acquisition originally triggered a 15 per cent SDLT charge under Schedule 4A FA 2003 (£705,000 on a £4.7m purchase, against roughly £555,000 on the standard residential schedule); the three-year SDLT clawback window is a separate consideration if the use changed within three years. The 15% SDLT and ATED interaction guide covers the clawback mechanic.

Example 3.3. A UK Ltd commissions a Knight Frank valuation that puts a flat at £2.05m, which sits inside the 10 per cent boundary band between band 2 and band 3. The difference matters: £9,450 in band 2 versus £32,200 in band 3, an annual gap of £22,750. The company submits a PRBC application in February 2026 with the Knight Frank report attached; HMRC confirms band 2 for 2026/27. The PRBC confirmation is non-binding for future periods, but materially reduces enquiry risk on the band selection for the period it covers.

Example 3.4. A charity holds a £2.8m Westminster flat as part of an endowment portfolio, let on a long lease to a third party. Section 150 FA 2013 Charitable Use Relief is potentially available; Property Rental Business Relief is also potentially available on the same facts. Either reduces the charge to nil; the trust deed and the lease documentation are the practical evidence. Net ATED payable: £0; return still due.

Band 4: £5m to £10m, £75,450 Charge

Example 4.1. A non-resident company holds a £6.8m Mayfair house occupied by family of the ultimate beneficial owner during periodic UK visits. No relief. Net ATED payable: £75,450. The dis-envelope analysis at this value usually points toward holding the property directly in your own name, but the SDLT cost on the dis-envelope itself (£612,000 on a £6.8m residential schedule purchase) is the gating factor in any modelling. The complete ATED guide works through the dis-envelope arithmetic in full.

Example 4.2. A UK Ltd holds a £7.5m Kensington townhouse let to a multinational corporate tenant on commercial terms throughout 2026/27. Property Rental Business Relief applies. The relief discipline at this band is documentary: commercial-rent comparables (Foxtons, Knight Frank rental indices), a tenant due-diligence file evidencing the unconnected status, and a clean tenancy agreement audit trail. Net ATED payable: £0.

Example 4.3. A property-trader Ltd holds a £5.4m St John's Wood house acquired with a view to onward sale within 12 months. Property Trader Relief under s.141 FA 2013 reduces the charge to nil for the qualifying days. If the property is occupied by the trader's connected party during the holding period, even briefly, the relief is clawed back on a days-held basis. Net ATED payable: £0 if the dwelling is held purely as trading stock; the clawback risk is the connected-occupation trap.

Band 5: £10m to £20m, £151,450 Charge

Example 5.1. A Jersey company holds a £14.5m Belgravia mansion occupied by family throughout 2026/27. No relief. Net ATED payable: £151,450. At this value the holding cost rises to roughly £14,000 a month before any maintenance or council tax. Schedule A1 IHTA 1984 exposes the shares to UK IHT at 40 per cent on death of the non-long-term-resident shareholder; the combined annual ATED plus IHT-on-death exposure is the usual driver of restructuring conversations at this band.

Example 5.2. A UK property-development company holds a £11.2m Chelsea townhouse acquired as part of a redevelopment scheme. Property Developer Relief applies for the qualifying days during which the dwelling is genuinely held as trading stock with a view to redevelopment and onward sale. The 2-year trading-history condition is the watch-point: a newly-incorporated development vehicle without two years of trade history may not satisfy s.138 FA 2013, in which case the charge bites. Net ATED payable: depends on the qualifying-days analysis.

Band 6: Over £20m, £303,450 Charge

Example 6.1. A BVI company holds a £28m Holland Park mansion occupied by the ultimate beneficial owner's family. No relief. Net ATED payable: £303,450. The five-year holding cost from 2026/27 through 2030/31, applying conservative CPI uplifts of 3 per cent annually, sits above £1.6m before any other costs. At this band, restructuring is almost always on the agenda; the gating factors are typically SDLT cost on dis-envelope (£3.36m on a £28m residential schedule purchase), CGT or CT-on-gains on in-company appreciation, and the shareholder's domicile / long-term residence position for Schedule A1 IHTA 1984.

Example 6.2. A UK-incorporated Ltd holds a £22m Mayfair property genuinely operated as a serviced residence with commercial bookings throughout the year (a corporate apartment let to unconnected business travellers via a managed-let operator). Property Rental Business Relief is potentially available on the basis of unconnected commercial lets, subject to documentary evidence of the managed-let arrangement and the absence of connected-person occupation. Net ATED payable: £0 if the relief test is met cleanly; £303,450 if the relief fails on any tested days.

Mid-Year Acquisitions: The Day-Apportionment Maths

Buy a chargeable dwelling part-way through the year and you do not wait for the next 30 April. The acquisition triggers a separate ATED return within 30 days of the acquisition date (or 90 days for a newly-built dwelling, measured from the earlier of completion or first occupation), and that short clock is where mid-year buyers most often slip into a penalty. You pay only for the days you hold the dwelling in the period: the charge is apportioned by (days held / 365).

The arithmetic is simple once you set it out. For a £3.2m London townhouse acquired by a Ltd on 1 November 2026 with no relief available:

• Days held in 2026/27: 1 November 2026 to 31 March 2027 = 151 days.
• Band 3 annual charge: £32,200.
• Apportioned charge: (151 / 365) × £32,200 = £13,317.
• Return due: within 30 days of acquisition = 1 December 2026.

If the same Ltd buys a £1.7m flat on 1 February 2027 instead:

• Days held in 2026/27: 1 February 2027 to 31 March 2027 = 59 days.
• Band 2 annual charge: £9,450.
• Apportioned charge: (59 / 365) × £9,450 = £1,527.
• Return due: within 30 days of acquisition = 2 March 2027.

For a newly-built dwelling, replace the 30-day rule with the 90-day rule. Acquisition for ATED purposes is measured from the earlier of the date of substantial completion or the date of first occupation, which is a fact-sensitive question: the builder's completion certificate, the building control completion notice, and the actual occupation dates can each be the one that fixes your date.

Pre-Return Banding Check (PRBC) for Boundary Cases

The PRBC is a no-fee HMRC service for dwellings valued within 10 per cent of a band boundary. The 10 per cent rule of thumb is HMRC's published trigger; in practice, any valuation that creates genuine uncertainty about the correct band is a candidate. The process:

1. Commission a RICS-registered valuation. The valuation should be at the relevant valuation date for the band test (1 April 2022 for periods through 2027/28, or the acquisition date if later). Typical fee for a single dwelling: £600 to £1,500 from a major firm.
2. Prepare the PRBC application. The application identifies the dwelling, sets out the valuation evidence, names the band you believe applies, and explains why the boundary question is genuinely open. A clean comparable-evidence file (recent local sales, rental yields, condition factors) helps HMRC's review.
3. Submit before the return deadline. PRBC applications go to the ATED Helpline at HMRC, typically by post or secure email per the published process. Submit early; HMRC's review can take 4 to 6 weeks at busy periods.
4. HMRC issues a banding confirmation. The confirmation is non-binding for future chargeable periods but operationally definitive for the period covered, materially reducing enquiry risk on the band selection.
5. File the ATED return on the confirmed band. The return references the PRBC confirmation reference. The 30 April deadline still applies.

PRBC is the right tool for genuine boundary cases. It is not a substitute for a robust valuation in clear-band cases, and HMRC reserves the right to challenge the underlying valuation later if new evidence emerges. The most common PRBC use cases sit at the £2m boundary (where the band jumps from £9,450 to £32,200, a £22,750 annual difference) and the £5m boundary (£32,200 to £75,450, a £43,250 annual difference).

Where to Go Next on ATED

To check whether you are even caught by ATED in the first place, read the ATED overview for companies. For the full regime in one place (valuation rules, every relief, the return, penalties and the dis-envelope question), read the complete 2026/27 ATED guide. To get a relief claim right, see how the rental property relief mechanics work in detail. And if a return has already been missed, the late-filing penalties guide sets out how the penalties build.

Authority Sources for the 2026/27 Bands

• HMRC: Annual Tax on Enveloped Dwellings, the Basics (current-year band table, gov.uk)
• HMRC ATED Technical Guidance (CPI indexation mechanic and November publication of next-year figures)
• HMRC ATED Manual (gov.uk Internal Manuals)
• Finance Act 2013, Part 3 (ss.94 to 174): the ATED statutory framework
• HMRC: ATED Returns Guidance (return deadlines, 30-day and 90-day rules)

The 2025/26 and 2026/27 band figures here were independently verified against gov.uk on 22 May 2026 and match Property Tax Partners' settled position on the regime.