High-value council tax surcharge

Last updated: 29/05/2026 (being updated)

In the 2025 Budget the Chancellor announced that a High Value Council Tax Surcharge (HVCTS) will be introduced for owners of residential property in England worth £2m or more.
The announcements and related documents set out the various proposed thresholds and rates payable. For residential property with values between £2m and £2.5m the rate will be £2,500 per year, with graduated rates increasing to a maximum rate of £7,500 per year for residential property with values above £5m.
The government states that these charges will be increased in line with CPI each year from 2029/30 onwards.
The HVCTS will be administered alongside existing council tax bills by local authorities who will collect the revenue on behalf of central government.
The government launched a consultation on the detailed design of the HVCTS.
Timing: The government’s consultation on the details relating to the surcharge closed on 14 July 2026. The surcharge is due to take effect from April 2028.

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