The government has confirmed plans to introduce a new levy on high-value residential property in England from April 2028.
The High-Value Council Tax Surcharge (HVCTS) will apply to homes valued at £2 million or more. A public consultation is expected in early 2026, with a targeted valuation exercise to follow.
The new surcharge will not be based on existing council tax bands. These bands, set using 1991 values, will continue unchanged.
Instead, the Valuation Office Agency will carry out a fresh valuation of properties in 2026. Those valued at £2 million or above will be placed into one of four new HVCTS bands.
This means that:
- Properties in lower council tax bands could still fall within the surcharge
- The existing banding of your property will not determine HVCTS eligibility
- The updated valuation may affect properties in high-growth areas
Currently, HVCTS is limited to residential properties in England. It is not yet clear whether the devolved administrations in Scotland, Wales or Northern Ireland will introduce similar measures.
If you own a property in a high-value area, such as London or the South East, the new surcharge could result in a significant recurring cost from 2028.
If you would like to understand the potential impact of HVCTS on your tax position or are considering a property sale, please get in touch. We would be happy to help.
