Almost all of HMRC’s total take from a new tax on high value homes is collected from London properties, with homes in just four of the capital’s boroughs contributing most of the £100m raised
According to analysis by UHY Hacker Young, HMRC figures show that London contributed £89m of the total £100m brought in from the Annual Tax on Enveloped Dwellings (ATED) in 2013-14.
Furthermore, 85% of nationwide receipts from the tax come from just four London boroughs.
Owners of houses in Westminster paid £52m, or over half the national total, while £28m was raised on homes in Kensington and Chelsea. Camden property owners contributed £3m and Barnet, location of the so-call ‘billionaires row’ of Bishops Avenue, paid £2m.
Mark Giddens, UHY Hacker Young tax partner, 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 nom-dom tax levy, foreign high net worths are beginning to feel targeted.’
‘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.’
Labour"s plans to introduce a Mansion Tax would also hit London primarily and will operate on the same basis at ATED in terms of the collection process.