England Consults on High Value Council Tax Surcharge for Homes Over £2 Million

The government has launched a consultation on a new High Value Council Tax Surcharge for England's most expensive homes, a move officials say will make the property tax system fairer and raise an estimated £430 million annually for local services. The surcharge, first announced in the 2025 Budget, will apply to residential properties valued at £2 million and above, affecting less than one percent of all homes.

Officials stated the reform addresses a long-standing imbalance, as council tax bands have not been updated since 1992 and do not reflect current property values. They argue this has created a situation where a modest family home can pay more than a multimillion-pound mansion. The new charge is intended to ensure the top one percent of highest-value properties pay what the government calls their fair share.

Exchequer Secretary to the Treasury Dan Tomlinson said a £10 million mansion in Mayfair should not pay less council tax than an ordinary family home in Darlington or Blackpool. He stated the change tackles historic unfairness and will put money back into communities across the country.

The eight-week consultation seeks views on the design, scope, and administration of...