Autumn Budget 2025
From 1 April 2028, a new annual charge will be introduced for owners of residential properties in England valued at £2 million or more. This charge, payable in addition to council tax, aims to raise revenue from the highest-value homes.
The charge will be based on 2026 property valuations carried out by the Valuation Office. Revaluations will then be carried out every five years to determine if the surcharge applies and at what threshold.
The applicable surcharge will be dependent on the property value as follows:
The above charges will be increased in line with CPI inflation each year, starting from 2029/30.
The charge will be levied on the property owners and not the occupiers, such as tenants where the property is rented.
Further details on the rules will be subject to consultation early next year. This will include looking at a support scheme for those who may struggle to pay the surcharge. It will also consider any relevant exemptions and reliefs, as well as how to deal with properties owned by companies, funds, trusts and partnerships. An appeal process will also be confirmed where home-owners disagree with the valuations.
