Overview
- The Labour government confirmed on Monday that the High Value Council Tax Surcharge will begin in April 2028 and apply to residential properties in England valued at £2 million or more across four bands with annual CPI uprating.
- HM Revenue & Customs’ Valuation Office will run a targeted valuation exercise to identify in‑scope homes, revalue properties every five years with the next scheduled revaluation in 2033, and revalue newly built or significantly improved homes sooner.
- Owners with annual incomes under £35,000 may defer paying the surcharge until the sale of the property or their death, but the Treasury consultation links deferred sums to HMRC’s late payment rate reported around 7.75 percent, which could make eventual bills far larger.
- Analysis in coverage warned that deferring the top annual charge repeatedly could create cumulative liabilities that exceed £115,000 and therefore be inherited alongside existing inheritance tax burdens, a point used by Conservative critics who label the measure a 'death tax'.
- The Office for Budget Responsibility has said the surcharge is likely to depress or push prices to cluster just below band thresholds, with roughly 165,000 homes estimated to be affected and key operational details to be set through the ongoing consultation.