Annual Tax on Enveloped Dwellings: reliefs and exemptions
Find out what reliefs and exemptions are available for Annual Tax on Enveloped Dwellings (ATED).
Overview
There are reliefs and exemptions that may:
- mean you do not need to pay any Annual Tax on Enveloped Dwelling (ATED) on your property
- reduce the amount of ATED you need to pay
Reliefs you can claim
You may be able to claim relief for your property if it is:
- let to a third party on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner
- open to the public for at least 28 days a year
- being developed for resale by a property developer
- owned by a property trader as the stock of the business for the sole purpose of resale
- repossessed by a financial institution as a result of its business of lending money
- acquired under a regulated home reversion plan
- being used by a trading business to provide living accommodation to certain qualifying employees
- a farmhouse occupied by a farm worker or a former long-serving farm worker
- owned by a registered provider of social housing or a qualifying housing co-operative
Find more information about these reliefs and the conditions you need to meet in sections 30 to 41 of the ATED technical guidance.
The Homes for Ukraine sponsorship scheme and ATED relief
Some reliefs from ATED may be lost if a residential property is used to house people as part of the Homes for Ukraine sponsorship scheme.
Those reliefs are for:
- property rental businesses
- property developers
- property traders
From 1 April 2022 these will continue to be available while a residential property is being used as part of the Homes for Ukraine sponsorship scheme.
Find full details in section 41A of the ATED technical guidance.
How to claim reliefs
To claim relief, use the ATED online service. If your relief claim reduces your ATED charge to nil, you need to use this service to submit a Relief Declaration Return.
If you cannot use the ATED online service, you can ask for an ATED or Relief Declaration paper return by emailing: paperforms.ated@hmrc.gov.uk.
Find out what you need to include in your email and where to send your paper return in the Returns Notice.
Exemptions
If you meet the conditions for an exemption, you do not need to file a return.
There are a number of exemptions from ATED, including:
- charitable companies using the dwelling for charitable purposes — all of the exemption conditions must be met in section 42 of the ATED technical guidance
- public bodies listed in section 43 of the ATED technical guidance
- bodies established for national purposes listed in section 44 of the ATED technical guidance
Updates to this page
Last updated 11 November 2022 + show all updates
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Guidance about the Homes for Ukraine sponsorship scheme and Annual Tax on Enveloped Dwellings relief has been updated.
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Information about the ‘Homes for Ukraine’ Scheme has been added.
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Information about how to ask for a paper return has been added to the how to claim reliefs section.
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Reference to Home Reversion Plan added to the section for reliefs you can claim.
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First published.