The mansion tax: what is the High Value Council Tax Surcharge, and how much will it be?

In England, the High Value Council Tax Surcharge is a new owner-paid charge for residential property valued at £2 million or more. It does not apply in Wales, Scotland or Northern Ireland.

What is the High Value Council Tax Surcharge, the so-called mansion tax?

The High Value Council Tax Surcharge is an annual charge on the owner, not the occupier, of an English residential property worth £2 million or more, so a tenant of a let home is not the liable person and the owner still pays ordinary Council Tax as well.

GOV.UK states: “Homeowners, rather than occupiers, will be liable to the surcharge and will continue to pay their existing Council Tax alongside the surcharge.” No published rule says a landlord may or must pass the charge to a tenant; the only related government wording says that where legal and beneficial ownership differ, compensation between them “is a matter for those parties to decide.”

The so-called mansion tax is not based on current Council Tax bands, because “the surcharge will not be determined by current Council Tax bands, which are based on property values from 1991.” The Valuation Office Agency will run a separate targeted valuation for properties above £2 million. Budget 2026 council tax searches are slightly off: the measure was announced at Budget 2025, consulted on in 2026, and is due from April 2028.

How much will the mansion tax be?

The mansion tax will be £2,500 a year for homes worth £2 million to £2.5 million, £3,500 for £2.5 million to £3.5 million, £5,000 for £3.5 million to £5 million, and £7,500 for homes worth £5 million or more.

The government describes the High Value Council Tax Surcharge as “a new annual charge on owners of residential property in England worth £2 million or above.” Those cash amounts are the starting charges from April 2028; GOV.UK says: “Charges will increase in line with CPI inflation each year from 2029-30 onwards.” The charge is aimed at a very small slice of the housing stock: “Fewer than 1% of properties in England are expected to be above the £2 million threshold.”

The government also plans a 100% premium for homes left substantially unfurnished and unoccupied for at least 12 months, but the core annual surcharge is the four-band £2,500 to £7,500 scale.

Abodient keeps each property’s current valuation on its Finance tab alongside the portfolio’s value, so a landlord can see which homes sit near the £2 million line well before the draft bands appear in Autumn 2027.

Where has the High Value Council Tax Surcharge consultation got to?

The High Value Council Tax Surcharge consultation has closed, the government response was published on 28 October 2026, and the government says it will proceed with the charge.

GOV.UK says: “The measure was announced at Budget 2025, and a consultation on the detailed design was launched on 19 May 2026.” The consultation ran from 19 May to 14 July 2026; the response date to use is 28 October 2026, not the Treasury impact note’s misprinted 2028 date. The response states: “Having considered the consultation responses, the government intends to proceed with the High Value Council Tax Surcharge.”

Primary legislation is already moving through the Finance Bill 2026-27, because “HVCTS is being legislated for in section 3 of the Finance Bill 2026-27.” Regulations and guidance are still expected in 2027, so details can still change. Draft bands are due in Autumn 2027, first local-authority bills in March 2028, and the charge starts in April 2028.

Last reviewed November 2026.

Sources

• GOV.UK, High Value Council Tax Surcharge — “The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2 million or more in 2026, taking effect in April 2028.” Source
• GOV.UK, High Value Council Tax Surcharge — “Homeowners, rather than occupiers, will be liable to the surcharge and will continue to pay their existing Council Tax alongside the surcharge.” Source
• GOV.UK, High Value Council Tax Surcharge consultation — “Where the legal and beneficial owner differ, there is typically a relationship between them, which could allow the beneficial owner to compensate the legal owner for the cost of the surcharge, but this is a matter for those parties to decide.” Source
• GOV.UK, High Value Council Tax Surcharge news story — “The surcharge will not be determined by current Council Tax bands, which are based on property values from 1991.” Source
• GOV.UK, High Value Council Tax Surcharge — “The Valuation Office will conduct a targeted valuation exercise to identify properties above £2 million and therefore in scope.” Source
• GOV.UK, Additional Council Tax charge on high value properties — “The High Value Council Tax Surcharge (HVCTS) is a new annual charge on owners of residential property in England worth £2 million or above.” Source
• GOV.UK, High Value Council Tax Surcharge — “Charges will increase in line with CPI inflation each year from 2029-30 onwards.” Source
• GOV.UK, High Value Council Tax Surcharge — “Fewer than 1% of properties in England are expected to be above the £2 million threshold.” Source
• GOV.UK, High Value Council Tax Surcharge — “To encourage properties to be brought back into use, a premium of 100% will be charged on properties left substantially unfurnished and unoccupied for a period of 12 months or more.” Source
• GOV.UK, Additional Council Tax charge on high value properties — “The measure was announced at Budget 2025, and a consultation on the detailed design was launched on 19 May 2026.” Source
• HM Treasury, High Value Council Tax Surcharge summary of responses — “Having considered the consultation responses, the government intends to proceed with the High Value Council Tax Surcharge.” Source
• GOV.UK, Additional Council Tax charge on high value properties — “HVCTS is being legislated for in section 3 of the Finance Bill 2026-27.” Source
• GOV.UK, High Value Council Tax Surcharge — “Taxpayers will be able to see their draft bands in Autumn 2027.” Source
• GOV.UK, High Value Council Tax Surcharge — “Local authorities will issue the first HVCTS bills in March 2028.” Source