According to accountancy group UHY Hacker Young, 89% of HMRC’s total take from the annual tax on enveloped dwellings (ATED), a recently introduced stamp tax on high-value homes, is collected from London properties. ATED was introduced two years ago as part of a series of measures to increase the tax take from the super-rich. It levies an annual tax charge on residential properties valued at over £2m held within a corporate ‘envelope’. Figures show HMRC raised £100m through ATED in 2013/14, with London contributing £89m of this figure.
HMRC’s figures show that 85% of nationwide receipts from the tax come from just four London boroughs. Owners of houses in Westminster contributed more than half (£52m) of the national total, while £28m was raised on homes in Kensington and Chelsea. Camden contributed £3m and Barnet – location of The Bishops Avenue, where the Sultan of Brunei, the Saudi Arabian royal family and Richard Desmond all own homes – paid £2m.
Mark Giddens, UHY Hacker Young tax partner, explains: ‘Once again, London’s wealthy expatriate population is bearing the brunt of the Treasury’s innovation in taxes. Having just recently been hit by an increase in the nom-dom tax levy, foreign HNWIs are beginning to feel targeted. The vast majority of tax receipts are clustered around the mansions of Westminster and Kensington and Chelsea, the traditional heartlands of foreign HNWIs. ATED is to be extended to lower value properties, but as things stand HMRC’s relatively low receipts raise the question of whether it is worth the time, resources and negative publicity that the tax brings.’
According to accountancy group UHY Hacker Young, 89% of HMRC’s total take from the annual tax on enveloped dwellings (ATED), a recently introduced stamp tax on high-value homes, is collected from London properties. ATED was introduced two years ago as part of a series of measures to increase the tax take from the super-rich. It levies an annual tax charge on residential properties valued at over £2m held within a corporate ‘envelope’. Figures show HMRC raised £100m through ATED in 2013/14, with London contributing £89m of this figure.
HMRC’s figures show that 85% of nationwide receipts from the tax come from just four London boroughs. Owners of houses in Westminster contributed more than half (£52m) of the national total, while £28m was raised on homes in Kensington and Chelsea. Camden contributed £3m and Barnet – location of The Bishops Avenue, where the Sultan of Brunei, the Saudi Arabian royal family and Richard Desmond all own homes – paid £2m.
Mark Giddens, UHY Hacker Young tax partner, explains: ‘Once again, London’s wealthy expatriate population is bearing the brunt of the Treasury’s innovation in taxes. Having just recently been hit by an increase in the nom-dom tax levy, foreign HNWIs are beginning to feel targeted. The vast majority of tax receipts are clustered around the mansions of Westminster and Kensington and Chelsea, the traditional heartlands of foreign HNWIs. ATED is to be extended to lower value properties, but as things stand HMRC’s relatively low receipts raise the question of whether it is worth the time, resources and negative publicity that the tax brings.’
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