From April 2015 ATED will apply to residential properties worth more than £1 million, bringing many more properties into the regime, and, from April 2016, also to residential properties worth more than £500,000.

While reliefs from the charge exist for certain property developers and landlords, importantly relevant claims must be made in time, otherwise penalties will (and are!) being levied. For new properties coming within the regime, the filing date has been extended from 30 April to 31 October this year.

For residential properties worth more than £2 million, the ATED charge is being increased by 50% above inflation for the period 1 April 2015 to 31 March 2016. This is a huge increase, particularly in monetary terms for more expensive properties.