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Budget 2021: ATED charges to increase in line with inflation

New relief for Housing Co-operatives

Caroline Fleet, Partner, Corporate Tax
03/03/2021
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The Annual Tax on Enveloped Dwellings (ATED) tax charge, which broadly applies to companies which own properties that are worth more than £500,000 and are either occupied by a non-qualifying person or are used for a non-qualifying purposes, is due to increase in line with inflation. 

The table below shows the annual chargeable amounts within each property band for the 2020 to 2021 period and the increased amounts for the 2021 to 2022 chargeable period, which begins on 1 April 2021.  

Taxable value of the property Current charges for the 2020/2021 period  Increased charges for the 2021/2022 chargeable period 
 £500,001 to £1,000,000  £3,700  £3,700
 £1,000,001 to £2,000,000  £7,500  £7,500
 £2,000,001 to £5,000,000  £25,200  £25,300
 £5,000,001 to £10,000,000  £58,850  £59,100
 £10,000,001 to £20,000,000  £118,050  £118,600
 £20,000,001 and over  £236,250  £237,400

Legislation will also be introduced to provide ATED relief for housing co-operatives. This relief will apply for all chargeable periods beginning on or after 1 April 2020 so eligible housing co-operatives who have already paid ATED for that period will be able to claim a refund. 

Budget 2021

What do the announcements mean for you and your organisation?

Insights

Annual Tax on Enveloped Dwellings returns for the year to 31 March 2021 must be filed and any tax paid by 30 April 2020.
Residential property investors have been the target of a number of the recent tax changes.
Annual Tax on Enveloped Dwellings returns for the year to 31 March 2021 must be filed and any tax paid by 30 April 2020.
Residential property investors have been the target of a number of the recent tax changes.

Contact us

Caroline Fleet
Caroline Fleet
Partner, Head of Real Estate
London