Mansion Tax Consultation Closes: High-Value Property Surcharge Coming April 2028
The UK government is consulting on a new "mansion tax" that will apply to homes valued above £2 million from April 2028. The scheme could cost homeowners £2,500 to £7,500 annually and is being collected alongside council tax, though revenue goes to the Treasury rather than local councils.
The government's consultation on the High Value Council Tax Surcharge (mansion tax) closes on July 14, 2026, with the new property tax set to launch on April 1, 2028. The surcharge will apply to residential properties valued at more than £2 million and will be collected through the council tax system, though revenues will flow to central government rather than local authorities.
How the Mansion Tax Works
The new property tax will cost homeowners £2,500 to £7,500 per year, depending on property value, and will apply to homeowners with properties valued at more than £2 million in 2026. The High Value Council Tax Surcharge will be introduced in April 2028 and will require some properties to be placed in additional tax bands based on their values, alongside the council tax system.
The consultation also explores applying a "non-resident premium"—an additional surcharge on top of the mansion tax for properties owned by non-UK residents. The consultation explores the possibility of applying a "non-resident premium" on top of the High Value Council Tax Surcharge, saying that there is interest in understanding whether demand from non-UK resident owners may be contributing to pressures on housing availability and prices.
What This Means for You
If you own or are planning to buy a residential property in the UK valued above £2 million, start planning for this new tax liability from April 2028. The exact amount you'll pay depends on your property's final banding under the new surcharge system. If you're a non-UK resident property owner, the consultation on the additional non-resident premium is still open, so this premium could add significantly to your bill once implemented. Landlords and expats investing in high-value UK residential property should review their tax plans now and consider the long-term cost of ownership beyond the purchase price.
Sources
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