What is the mansion tax?
The mansion tax is the nickname for the High Value Council Tax Surcharge. It is a new annual charge on homes in England worth more than £2 million. Announced in the November 2025 Budget, it starts in April 2028. The charge ranges from £2,500 a year to £7,500 for homes worth over £5 million.
Council tax bands in England are still based on 1991 values. A very expensive home pays only around three times as much as a small flat. The surcharge was designed to make owners of the most valuable homes pay more, without a full council tax revaluation. It will be paid by owners rather than tenants. Exact valuations will matter a great deal.
From April 2028 the surcharge will apply in bands. It starts at £2,500 a year for homes worth over £2 million and rises to £7,500 above £5 million. The Valuation Office Agency will carry out a targeted exercise to identify and value qualifying homes, with revaluations every five years. Owners in high-value areas are watching the details of the valuation process closely.
Only a small share of homes will be affected, many of them in London and the South East. Supporters say it is a fair way to tax wealth tied up in property. Critics point to asset-rich, cash-poor owners, such as pensioners who bought long ago, and question the cost and accuracy of valuing high-end homes. Some owners may sell or seek to defer.
Who it affects: Owners of homes worth over £2m, from 2028
The left generally supports the mansion tax as a fair way to tax property wealth, and some want it to go further.
The right generally opposes it as a new wealth tax that punishes homeowners and could hit cash-poor families.
Britain is split. Now you decide.
In WeDecide you can switch the mansion tax on or off in your Budget and weigh the revenue against the political backlash.
Play WeDecide freeCommon questions
When does the mansion tax start?
The High Value Council Tax Surcharge starts in April 2028.
How much is the mansion tax?
From £2,500 a year for homes over £2 million to £7,500 for homes over £5 million.
Does the mansion tax apply in Scotland and Wales?
It was announced for England, where council tax policy is set by Westminster.