High Value Council Tax Surcharge – how it will work?

As of April 2028, properties in England worth £2 million or more will be placed into bands based on their property value and charged an additional levy on top of council tax – see table.

The Valuation Office will conduct a targeted valuation exercise to identify properties above £2 million and revenues will flow to central government, rather than remaining with local government, as is the case for standard council tax. Charges will increase in line with CPI inflation each year from 2029-30 onwards.

It is stated that the surcharge will be levied on property owners, rather than occupiers. In the case of rental properties, the occupier – the tenant – usually pays council tax, so it seems that the surcharge will need to be billed to the landlord separately.

There will be further government consulting on measures for those who may struggle to pay the charge, such as potential provisions for the charge to be rolled-up and only paid on the transfer of the property on an inheritance, gift, or sale.

We also await further information about potential reliefs and exemptions and the treatment of ownership structures (such as companies, funds, trusts and partnerships), or situations where someone is required to live in a property as a condition of their job for example.

Many second homes already face double council tax, so this will be an additional expense on top.

High Value Council Tax Surcharge charging structure