Legal News | 15.01.26
How big is your house? A taxing issue.
As Scotland announced its own ‘mansion tax’ this week, we look back at November’s Budget and the proposed introduction of a new ‘High Value Council Tax Surcharge’ (HVCTS) for owners of residential properties in England.
Rumoured in the run-up to multiple Budgets, the Chancellor announced in November that residential properties with a value greater than £2 million would be subject to a surcharge in addition to existing Council Tax liabilities.
Although the surcharge will not apply until April 2028, properties will be valued by the Valuation Office Agency this year and those identified as being worth more than £2 million will be placed into one of the following bands:
| Property Value | HVCTS (per annum)* |
|---|---|
| £2.0m - £2.5m | £2,500 |
| £2.5m - £3.5m | £3,500 |
| £3.5m - £5m | £5,000 |
| £5m+ | £7,500 |
*These recurring annual charges will increase in line with CPI inflation from the 2029/30 tax year.
The surcharge is to be paid by the owner, rather than the occupier of the property, and collected through the existing Council Tax system.
The proposed introduction of HVCTS has not been without criticism and a public consultation will be held early this year to address potential difficulties in collecting the tax (for example, where the owner simply does not have the funds to pay or how more complex ownership structures, such as trusts, partnerships and companies, should be treated).
At Wansbroughs, we will be reviewing the consultation when released. In the meantime, if you are concerned about HVCTS and how you might be affected, please contact the Private Client team at wealth@wansbroughs.com.
