Property & Tax Update
Consultation Opens on High Value Council Tax Surcharge
The government has launched a consultation on a new surcharge for residential properties in England valued at £2 million or more.
The government has opened a consultation on the proposed High Value Council Tax Surcharge, expected to come into force in England from 1 April 2028.
The surcharge will apply to owners of residential properties worth £2 million or more and will be payable in addition to existing Council Tax.
What the consultation covers
- How high value properties will be identified
- How homes will be valued and placed into surcharge bands
- Who will be liable to pay the surcharge
- Potential deferral schemes and exemptions
- How owners can challenge or appeal decisions
The Valuation Office is expected to carry out a targeted valuation exercise, with properties placed into one of four bands. Revaluations are proposed every five years.
Legal owners will generally be liable for the surcharge, including trustees in some arrangements. The government is also exploring whether an additional premium should apply to non-UK resident owners.
The consultation is open until 14 July 2026.
View Government Consultation