Overview
- The Treasury launched an eight-week consultation on Tuesday that outlines detailed rules for a High Value Council Tax Surcharge due to take effect from April 2028.
- The proposal creates four fixed annual charges of £2,500, £3,500, £5,000 and £7,500 for homes valued at £2m–£2.5m, £2.5m–£3.5m, £3.5m–£5m and over £5m respectively.
- Administration would rest on the Valuation Office Agency carrying out targeted valuations and placing properties in bands with revaluations every five years and appeals handled by the VOA and the Valuation Tribunal for England.
- A deferral scheme for owners with low incomes or low savings is proposed with suggested eligibility around £35,000 annual household income or £16,000 savings and interest charged on deferred sums using indexed rate options.
- Officials and industry bodies warn of likely market effects such as sale-timing and price bunching below the £2m threshold, potential developer liability for unsold new-builds, and debate over an extra premium for non-resident owners.