Ministers will introduce a High Value Council Tax Surcharge (HVCTS) in England from April 2028 for owners of residential property valued at £2 million or above. The Valuation Office Agency confirmed a targeted valuation exercise will take place in 2026 and said a public consultation on the detailed rules will run in early 2026. The announcement was set out in a government notice on 28 November 2025.
Unlike Council Tax, which is based on 1991 values, HVCTS will rely on current market evidence gathered by the Valuation Office Agency in 2026. After implementation, the government indicates a five‑year revaluation cycle and annual uprating of charges from 2029–30 in line with CPI.
The surcharge sits outside the existing Council Tax system. Council Tax bands will not determine eligibility for HVCTS and will not be changed by it; equally, HVCTS status will not alter a property’s Council Tax band. In practical terms, Council Tax bands F, G and H have no role in determining HVCTS.
HM Treasury’s fact sheet sets out four fixed annual charges aligned to the value established at the 2026 valuation point: £2,500 for £2.0–£2.5 million; £3,500 for £2.5–£3.5 million; £5,000 for £3.5–£5.0 million; and £7,500 for £5 million and above. From 2029–30, the charges will be uprated by the Consumer Prices Index.
Liability will fall on the homeowner rather than the occupier, and social housing is out of scope. Treasury estimates that fewer than one per cent of properties in England will be above the £2 million threshold. The consultation will also cover reliefs and exemptions and proposed rules for complex ownership, including companies, funds, trusts, partnerships and certain tied accommodation.
Local authorities will administer HVCTS alongside Council Tax, collecting the surcharge on behalf of central government. Treasury estimates the measure will raise around £430 million a year from 2028/29 to support local government services. The government has committed to meet administrative costs through a new burdens assessment and will design a targeted support scheme for those who may struggle to pay.
For property owners and advisers, the immediate planning window is 2026. The VOA’s exercise will be separate from Council Tax banding and evidence‑led; keeping records of substantial works, sales and valuations will help manage any engagement once the programme begins.
For billing authorities, the operational task is to build HVCTS into billing and collection processes while maintaining a clear distinction from Council Tax. Resident communications and billing design should make explicit that Council Tax bands remain unchanged and that banding changes have no bearing on HVCTS status.
Key milestones are now in view: HM Treasury guidance on 26 November 2025 and the Valuation Office Agency notice on 28 November 2025; consultation in early 2026; VOA valuation work across 2026; first HVCTS bills from April 2028; CPI uprating from 2029–30; and a five‑year revaluation cycle thereafter.