From April 2028 residential properties valued at £2m or more will attract a new high value council tax surcharge.
Announced in the Autumn Budget, eligible owners (rather than occupiers) of properties identified as being valued £2m or more by the Valuation Office will pay this recurring annual surcharge on top of their existing council tax.
The surcharge will work on a sliding scale as follows for 2028-29, depending on the value of the property based on 2026 valuations:
Exemptions and reliefs will be available in due course, as well as separate rules for more complex ownership structures including where residential property is owned by companies, funds, trusts or partnerships or where a person is required to live in a property as a condition of their job. We will update our clients when more details are available.
