delete The Annual Tax on Enveloped Dwellings (Indexation of Annual Chargeable Amounts) Order 2020
This Order adjusts the Annual Tax on Enveloped Dwellings (ATED) annual chargeable amounts for chargeable periods beginning on or after 1 April 2020, using a table that references the taxable value of the interest on the relevant day. It is an indexation mechanism under section 101 of the Finance Act 2013, intended to update thresholds in line with inflation.
This Order perpetuates a distortionary tax that penalises specific property ownership structures, creating arbitrary compliance burdens and distorting capital allocation decisions. The ATED itself—originating from FA 2013—was premised on the flawed notion that company ownership of residential property constitutes a social harm requiring correction. Such taxes increase transaction costs, discourage legitimate property investment, and represent government interference in private ownership choices. Indexation merely preserves an existing distortion; deleting this Order (and ideally the underlying ATED) would remove a layer of complexity that benefits neither the market nor ordinary taxpayers, while eliminating compliance costs that fall disproportionately on those holding property through corporate structures.