Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the answer of 21 April 2026, to Question 126749, on Council Tax: Surcharges, what the evidential basis is for residential dwellings being liable for both taxes, including the proposed higher level for foreign owners under the new surcharge.

The Annual Tax on Enveloped Dwellings (ATED) applies to companies that own UK residential property worth more than £500,000. ATED is intended to tackle tax avoidance, ensuring those who 'envelope' residential properties, by owning or purchasing them through corporate structures without a commercial purpose, pay a fair share of tax.

The High Value Council Tax Surcharge (HVCTS) will apply to owners of residential properties in England worth £2 million or above. Some companies who are currently liable to pay ATED will be in scope of the HVCTS. The government sought views through consultation on a non-resident surcharge for HVCTS, a response will be published in due course.