- Government launches next step in reforms that will tackle
historic unfairness and see high value properties pay their fair
share
- New surcharge on the top 1% of most valuable properties will
put money into communities and local services across the country.
- First announced at Budget 2025, the reforms will rebalance
the system which has been unchanged since 1992.
The government has launched a consultation today (May 19) on the
details of the new High Value Council Tax Surcharge to make the
system fairer for households across the country.
The move, announced at Budget 2025, will ensure those with the 1%
most valuable properties pay their fair share - helping to fund
vital local government services and implementing a significant
reform to improve fairness within England's property tax system.
Council tax has remained untouched for decades and has not been
readjusted as property values increase. That means that under
this flawed system, a multimillion pound mansion could be paying
less council tax than a small family home.
Today the government is setting out the details for the new
charge on owners of residential property in England worth £2
million and above to address this unfairness. The consultation
also outlines how properties will be identified, valued and
placed in a band for the surcharge.
, Exchequer Secretary to the
Treasury, said:
“A £10 million mansion in Mayfair should not be paying less
council tax than an ordinary family home in Darlington or
Blackpool.
“This change tackles historic unfairness, so that those with the
most valuable properties pay their fair share, helping to
rebalance the system and putting money back into communities up
and down the country.”
Revaluations of properties worth more than £2 million will be
carried out every five years, with the next
revaluation being held in 2033, ensuring that the
tax remains fair and up to date with house
prices.
The consultation also sets out proposals for taxpayers to review
the valuation of their property. The charge, which will affect
less than 1% of properties, will come in from April 2028 and is
expected to raise around £430 million per year to support funding
for local government services.
Further information
The consultation launched today will run for eight weeks and
taxpayers, local government, tax experts,
legal professionals and those in the property industry
are encouraged to respond.
The consultation will specifically seek views on:
· the design of the tax
surcharge
· proposed scope of the tax
surcharge
· a deferral mechanism, to
support those who cannot pay
· the billing process
· the proposed appeals
process
· administration and
enforcement mechanisms
