Guidance

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 several reliefs and exemptions that mean you might not have to pay any ATED on your property or may reduce the amount you have 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 isn’t, 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

Find more on these reliefs and the criteria you need to meet in sections 30 to 41 of the ATED technical guidance.

How to claim reliefs

If you have a claim to relief that reduces your ATED charge to nil, you can submit a Relief Declaration Return using the ATED online service.

If you’re unable to use the new ATED online service then you can still access the old ATED return or the Relief Declaration Return through the Returns Notice.

Exemptions

There are a number of exemptions from ATED:

  • charitable companies using the dwelling for charitable purposes – make sure all of the exemption conditions are met in section 42 of the ATED: technical guidance
  • public bodies – there are lists of exempt public bodies in section 43 of the ATED: technical guidance
  • bodies established for national purposes – listed at section 44 of the ATED: technical guidance

If you meet the conditions for an exemption, you don’t need to file a return.

Published 24 August 2015
Last updated 31 March 2017 + show all updates
  1. Reference to Home Reversion Plan added to the section for reliefs you can claim.
  2. First published.