Just four London boroughs contributed 85% of the total tax raised by the government’s new charge on mansions held in corporate vehicles.
New figures from HMRC show the Annual Tax on Enveloped Dwellings – which introduced an annual tax charge on houses valued over £2m and held within a corporate envelope – raised £100m.
London contributed £89m of the total raised, with £85m coming from Westminster, Kensington & Chelsea, Camden and Barnet, according to an analysis by accountancy group UHY Hacker Young.
Westminster alone contributed more than half of the total at £52m, with Kensington & Chelsea contributing £28m.
Camden accounted for £3m, while Barnet – home to ‘Billionaire’s Row’ Bishops Avenue – raised £2m.
Mark Giddens, tax partner at UHY Hacker Young, said: “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 non-dom tax levy, foreign High Net Worths are beginning to feel targeted.
“The vast majority of tax receipts are clustered around the mansions of Westminster and Kensington & Chelsea, the traditional heartlands of foreign HNWs. It’s crucial that the Government strikes the right balance in encouraging HNWs and foreign investment to the UK.
“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.”
