Autumn Budget 2025 – High Value Council Tax Surcharge
Starting in 2028-29, the government will introduce a High Value Council Tax Surcharge (HVCTS) for residential properties in England valued at £2 million or more. This surcharge will be collected by local authorities, but the revenue will go to central government.
High Value Council Tax Surcharge Charging Structure
|
Property Value |
Surcharge |
|---|---|
|
£2 million – £2.5 million |
£2,500 |
|
£2.5 million – £3.5 million |
£3,500 |
|
£3.5 million – £5 million |
£5,000 |
|
Over £5 million |
£7,500 |
The surcharge amounts will be based on the value of the residential property in 2026. The surcharge will increase as the property value rises, up to a maximum charge of £7,500 for properties valued over £5 million.
According to HM Treasury figures, the surcharge will apply to fewer than 1% of properties in England. Homeowners, not tenants, will be liable for the surcharge, which will be in addition to their existing Council Tax. Social housing will be excluded.
Properties above the £2 million threshold will be reassessed every five years by the Valuation Office. The surcharge rates will increase annually in line with CPI inflation starting in 2029-30.
This new charge is expected to raise around £430 million annually for local government services. Local authorities will be compensated for the additional costs of administering the surcharge. A public consultation on further details, including reliefs and exemptions, will take place next year.
