Exchequer Secretary (): In the 2025 Budget, the
government announced the introduction of a new High Value Council
Tax Surcharge (HVCTS) on owners of the most valuable 1% of
residential properties in England. Today, together with the
Secretary of State for Housing, Communities and Local Government,
I am launching a consultation on the detailed design of this new
surcharge.
Households living in lower‑value homes often pay more council tax
relative to the value of their property than those in the most
expensive homes. For example, a Band D home in parts of the North
can face a higher annual council tax bill than a property worth
many millions of pounds in parts of central London. The HVCTS
will change that, implementing a significant reform to improve
fairness within England's property tax system, ensuring those
with the most valuable properties pay their fair share.
From April 2028, owners of residential properties valued at £2
million and above will be liable to pay the HVCTS, in addition to
their existing council tax bill. Fewer than 1% of homes in
England are expected to be affected. Properties will be valued
for the purpose of the HVCTS and placed into one of four value
bands, with fixed annual charges uprated in line with inflation.
Council tax bands will remain separate to this new tax.
The consultation seeks views on the design of the tax including
scope, support for those who cannot pay, how the tax will be
administered and how owners can challenge and appeal their bill.
The consultation also includes detailed information for local
authorities, who will collect the tax on behalf of central
government. The revenue will be used to support funding for local
government services. Local authorities will be fully compensated
for any additional administrative burdens.
We welcome feedback on the detailed design set out in this
consultation from local government, homeowners, tax experts,
legal professionals and those in the property industry about the
technical design and impact of the tax. The consultation will
close on 14 July.
The consultation is available at https://www.gov.uk/government/consultations/high-value-council-tax-surcharge(opens
in a new tab).
