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New charge on residential properties in England worth £2m or more
The current council tax system has been in place since 1993. In the 2025 Budget, the government announced a new surcharge for owners of high-value properties.
The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2m or more in 2026. The new charge will take effect from April 2028 and charges will rise each year thereafter in line with Consumer Price Index inflation.
Homeowners, rather than occupiers, will be liable to the surcharge, in addition to their existing council tax.
The Valuation Office will conduct a targeted valuation exercise to identify properties above £2m and therefore in scope. Fewer than 1% of properties in England are expected to be above the £2m threshold. Revaluations will be conducted every five years. Once the valuation exercise is completed, properties above the threshold will be place into bands based on their assessed value.
A public consultation on details relating to the surcharge will be held in early 2026 and the government will also consult on reliefs and exemptions, complex ownership structures and tied property.