Property Taxation
‘Mansion taxes’
The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2 million or more (in 2026), which will take effect in April 2028. It was announced by Chancellor Reeves in 2025, and no significant changes to the proposals were included in the current Budget.
The surcharge will be £2,500 for properties between £2m and £2.5m, £3,500 between £2.5m and £3.5m and £5,000 between £3.5m and £5m. Above £5m, the surcharge is £7,500.
Meanwhile, the Annual Tax on Enveloped Dwellings (ATED) charges will increase by 3.5% in line with inflation. For example, the top rate (properties valued above £20 million) will increase from £303,450 in 2026/27 to £314,050 in 2027/28.