Mansion tax: what is announced for English homes?
The mansion tax is the announced High Value Council Tax Surcharge on owners of English homes worth £2 million or more, due from April 2028 alongside Council Tax.
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What has the government announced?
HM Treasury’s factsheet of 26 November 2025 sets out an annual charge on owners, rather than occupiers, in addition to existing Council Tax. Social housing is outside its scope. This is announced policy with a future start date, not a bill due today.
How much are the announced annual charges?
| Home value | Annual charge |
|---|---|
| £2 million to £2.5 million | £2,500 |
| £2.5 million to £3.5 million | £3,500 |
| £3.5 million to £5 million | £5,000 |
| £5 million or more | £7,500 |
Source: HM Treasury factsheet, 26 November 2025, opened 25 October 2026. These reproduce the published band labels; final rules will determine treatment at band boundaries. Charges are due to rise with Consumer Prices Index inflation from 2029-30. This is a fixed charge for each band, rather than a percentage of the home’s value.
How will homes be valued?
HMRC and the Valuation Office Agency, 28 November 2025, describe a separate targeted valuation using property values in 2026. Current Council Tax bands, based on 1991 values, will not decide eligibility or change because of this exercise.
HM Treasury’s update of 19 May 2026 says revaluations will take place every five years, with the next in 2033.
What is proposed but not law?
The GOV.UK consultation published on 19 May 2026 ran until 14 July 2026. It proposes payment deferral for eligible owners of their main home, with interest and a debt secured against the property. Deferral delays payment; it does not cancel the tax.
The consultation sought views on exemptions, discounts, ownership rules, appeals and a possible premium for non-resident owners. These proposals do not themselves create legal reliefs or charges.
The October 2026 consultation response confirms a deferral scheme, discounts, exemptions and a 100% premium for homes substantially unfurnished and unoccupied for at least 12 months, regardless of the owner’s residence. The government will keep premiums under review. The measure is to be legislated in Finance Bill 2026-27.
How does this compare with wealth tax ideas?
The Wealth Tax Commission’s December 2020 report defines a broad wealth tax as a charge across assets after deducting debts. It considered both annual and one-off designs. Those are policy ideas, not rules created by this property surcharge.
The surcharge uses a home’s value and a fixed band charge. A broad wealth tax would need rules for other assets and debts. Read the UK wealth tax proposals explainer for that debate and the Data hub’s tax and leaving guides for related evidence.
See the Budget tracker for announcements and effective dates.
What else do readers ask?
When does the mansion tax start?
HM Treasury announced an April 2028 start. It is a future charge, not a surcharge payable now (factsheet, 26 November 2025).
Does the mansion tax apply across the UK?
This surcharge applies to England only. The May 2026 consultation does not set property tax rules for Scotland, Wales or Northern Ireland.
Will my current Council Tax band decide whether I pay?
No. HMRC says a separate valuation using 2026 property values will decide the surcharge band. Existing Council Tax bands do not determine eligibility (28 November 2025).
Would moving abroad remove the surcharge?
The announced charge concerns ownership of an English property. The government plans a premium for homes that are substantially unfurnished and unoccupied for at least 12 months, regardless of the owner's residence. Premiums remain under review (HM Treasury, 28 October 2026).
Where can I explore this further?
Full sourced leavers tracker. Articles and tracker roundups.
Sources
- HM Treasury: High Value Council Tax Surcharge factsheet, .
- HMRC and Valuation Office Agency: High Value Council Tax Surcharge: valuation information, .
- GOV.UK: High Value Council Tax Surcharge: closed consultation, .
- MHCLG, HM Treasury and HMRC: High Value Council Tax Surcharge: detailed consultation, .
- HM Treasury: High Value Council Tax Surcharge: consultation response, .
- HM Treasury: Fairer taxes for high-value homes, .
- UK Parliament: Council Tax: Surcharges, written answer, .
- Wealth Tax Commission: A wealth tax for the UK: executive summary, .
- HM Treasury: Budget 2026 date, .