An annual charge has applied from 1 April 2013 to each “expensive dwelling” owned by a company, initially to properties worth more than £2m.
The rate of tax depends on the property value at the relevant valuation date. From 1 April 2015 the charge was extended to properties worth between £1m and £2m and from 1 April 2016 the charge was further extended to properties worth between £500,000 and £1m.
The table below shows the rates for 2022/23.
The “property value” for this purpose was initially the value of the property as at 1 April 2012 or, if later, the date the property first enters the ATED regime. Properties are then revalued every five years and values for returns for 2022/23 are based on the value at 1 April 2017.
|Annual charge 2022/23||£3,800||£7,700||£26,050||£60,900||£122,250||£244,750|
Statutory reliefs from the ATED charge are not automatic, and must be claimed. A single return claiming exemption on a number of properties can be made, but must be made by an electronic return using HMRC’s Government Gateway.