The High Value Council Tax Surcharge: homes over £2 million from April 2028
Owners of homes in England worth £2 million or more will pay an annual surcharge from April 2028, in four bands. Budget 2026 confirms deferrals, discounts and a premium on empty homes.
The surcharge was announced at Budget 2025. It applies to owners of residential property in England worth £2 million or more, about 1% of homes, and comes into force on 1 April 2028. The Valuation Office will carry out a valuation exercise to place properties into bands.
Show the data
| £2m to £2.5m | £2,500 |
|---|---|
| £2.5m to £3.5m | £3,500 |
| £3.5m to £5m | £5,000 |
| Over £5m | £7,500 |
What Budget 2026 adds
After consultation, the government confirms a deferral scheme for owners who may struggle to pay, a series of discounts and exemptions, and a 100% premium on properties left empty and unoccupied for 12 months or more. The measure will be legislated in Finance Bill 2026-27.
What owners can do now
- Keep evidence of the property’s condition and any features that affect its value.
- Plan the cash: it is an annual cost on top of council tax.
- If you have a property near the £2 million line, take advice before major works.
Sources
This insight is general information, not advice for your circumstances. Talk to us before acting on it.