- 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.
- Timing: The government’s plan is to launch a public consultation on the details relating to the surcharge in early 2026 and for the surcharge to take effect in April 2028.
Resources (click to open)
