The High Value Council Tax Surcharge (HVCTS) (‘Mansion Tax’) is coming to England from April 2028 and the UK Government has started consulting on how this will apply.
UK Budget 2025 (point 4.121) announced that from April 2028 in England, the UK Government will impose the HVCTS on residential properties in addition to existing Council Tax. This charge will be based on updated property valuations and will be collected by relevant Local Authorities, support funding for local government services and paid alongside the Council Tax.
The expected consultation has now been launched. Properties will be placed into bandings, like the banding structure that applies for Council Tax:
|
Threshold
|
HVCTS
|
|
£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
|
|
over £5 million
|
£7,500
|
The consultation also covers the following:
- The definition of the ‘owner’ – i.e. who is liable to pay;
- The proposed support mechanism for those who cannot pay;
- The proposed list of property level discounts and exemptions;
- The billing and administration process; and
- Challenges by the ‘owner’ and enforcement
For Bookkeepers
The consultation is open until 14 July 2026 and responses can be made:
- Online; or
- E-Mailed to hvcts@communities.gov.uk; or
- In writing to Ministry of Housing, Communities and Local Government, 2 Marsham St, London, SW1P 4DF
This will apply to the legal owner and / or the leaseholder of the property. Therefore, like Council Tax, whilst this is not a bookkeeper responsibility, ICB suggests members may have clients in the property industry, for example landlords.
