Why Understanding High Value Council Tax Matters
Your property's classification as a high-value home can affect your council tax bill significantly. Understanding this surcharge helps you plan finances and manage property investments wisely.
Avoid surprises on your council tax bill and budget accurately for high-value properties.
The surcharge applies every year from April 2028 and increases with CPI inflation, making long-term planning essential.
Knowing potential surcharges helps landlords and investors assess profitability and long-term costs.
Ensure you report property value accurately to avoid penalties.
Track which properties in your portfolio may incur high-value council tax and plan accordingly.
The mansion tax is an annual surcharge paid in addition to standard council tax. Officially, it is known as High Value Council Tax. The amount you pay depends on your property's assessed market value in 2026, with the government applying four fixed mansion tax bands.
| Property Value (2026) | Annual Mansion Tax Surcharge |
|---|---|
| £2 million – £2.5 million | £2,500 per year |
| £2.5 million – £3.5 million | £3,500 per year |
| £3.5 million – £5 million | £5,000 per year |
| Over £5 million | £7,500 per year |
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Frequently Asked Questions
The mansion tax is the common name for the High Value Council Tax Surcharge, an annual charge on residential properties in England valued over £2 million, effective from April 2028.
The first payments will be due in April 2028, following VOA property valuations conducted in 2026.
Yes. Buy-to-let properties, second homes, holiday homes, and properties owned via companies or trusts are all included if valued over £2m.
No. The mansion tax applies regardless of your existing council tax band, including Bands F, G, or H.
Yes. If you believe the VOA valuation is incorrect, you will have the right to appeal using formal processes introduced before April 2028.