High value council tax surcharge – what you need to know

What is changing?

From April 2028, a High Value Council Tax Surcharge will apply to residential properties valued at over £2 million. Importantly, this charge will fall on homeowners, not occupiers or tenants.

The Valuation Office Agency (VOA) will conduct a nationwide valuation exercise in 2026 to identify properties that exceed the £2 million threshold. These valuations will form the basis for the surcharge.

How much will you pay?

The surcharge will be collected alongside your regular Council Tax bill. Rates will be tiered according to property value:

The Chancellor has confirmed a support scheme for those who may struggle to pay, targeted at those most in need. In addition, the government will consult on reliefs and exemptions, including rules for complex ownership structures such as companies, funds, trusts, and partnerships.

What does this mean for homeowners?

• If your property is worth more than £2 million, you should prepare for additional annual costs starting in 2028.
• Consider reviewing your property’s likely valuation ahead of the VOA exercise in 2026.
• For those with complex ownership arrangements, keep an eye on the consultation for potential exemptions.

Homeowners should start planning now. Factor the surcharge into your long-term financial plans. If your property is owned through a company, trust, or other structure, seek professional advice to understand how the rules will apply. Ensure you are prepared, the government’s consultation on reliefs and exemptions may influence future tax obligations.

If you own or manage a high-value property, now is the right time to prepare for upcoming changes. At Greenwoods, our Private Wealth team can offer expert guidance to help you understand the implications and plan effectively.