From 1 April 2015, property valued at over £1 million up to £2 million will be within the scope of ATED. Property valued at over £500,000 up to £1 million will bewithin the scope of ATED from 1 April 2016.
They will therefore introduce two new ATED bands:
For property valued at over £1 million up to £2 million, the annual charge will be £7,000. The first return will be due on 1 October 2015, with payment by 31 October 2015.
For property valued at over £500,000 up to £1 million, the annual charge will be £3,500. We do not yet know when the first return must be filed and the tax paid for the 2016 chargeable period.
Once the regime is fully introduced, the bands will be:
| Annual Tax on Enveloped Dwellings (ATED) Rates |
| Property value |
Annual tax applying (excluding indexed increase) |
| Over £500,000 to £1 million |
£3,500 |
| Over £1 million to £2 million |
£7,000 |
| Over £2 million to £5 million |
£15,400 |
| Over £5 million to £10 million |
£35,900 |
| Over £10 million to £20 million |
£71,850 |
| Over £20 million |
£143,750 |
