Tax compliance is a fact of life for any company operating in the UK. Whether you’re a property investor using a Special Purpose Vehicle (SPV) or running a trading business, you’re expected to keep your records in order and submit tax returns to HMRC. While Corporation Tax returns are familiar territory for most, other filings—like the Annual Tax on Enveloped Dwellings (ATED)—can easily be overlooked, especially by property-owning companies.

This guide breaks down what UK entities need to file, when to do it, and how to ensure you’re not paying more tax than you need to.

ATED: What It Is and Who It Affects

The Annual Tax on Enveloped Dwellings (ATED) is a separate UK tax aimed at companies (and other non-natural persons) that own UK residential properties valued over £500,000. If your company owns a residential property that falls within this threshold as of 1 April 2022 (the latest revaluation date), you may be subject to ATED.

This applies whether you’re a UK company, a non-resident landlord, or a partnership with a corporate member.

Even if you don’t owe any ATED due to reliefs (e.g. the property is let out or under development), you are still required to submit an ATED return annually to claim the relief.

Key ATED Deadlines

The ATED return and payment deadline is always 30 April, covering the following tax year. So, for the 2025/26 tax year (running from 1 April 2025 to 31 March 2026), the return and any tax owed are due by 30 April 2025.

The charge is based on the property’s valuation and is updated every five years or when a property is newly acquired or significantly altered. The current valuation cycle uses property values as of 1 April 2022, and these will apply until the 2027/28 tax year, unless the property undergoes a material change.

ATED Reliefs:

Even if your company owns a qualifying property, you might not have to pay ATED if it’s:

• Let to a third party on a commercial basis.
• Being redeveloped or held as stock for resale.
• Provided to a qualifying employee for business use.
• Owned by a registered charity and used for charitable purposes.

However, to benefit from these reliefs, you must still submit ATED return each year using a Relief Declaration Return. Reliefs are not automatic and failing to declare them on time can result in penalties.

Conclusion

Navigating UK entity tax returns doesn’t need to be overwhelming. With clear deadlines, proper documentation, and a good understanding of your relief entitlements, you can stay compliant and avoid unnecessary penalties. This is especially true for companies holding residential properties, where the obligation to submit ATED return can be easily missed—despite being vital, even when no tax is owed.

Whether you’re new to property investment, expanding your business, or just need to get your filings in order, staying proactive about your tax responsibilities is a smart business move.