High Value Council Tax Surcharge: Consultation

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 that 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:

[HCWS35]