On 19 May 2026, the government opened an eight-week consultation on the proposed High Value Council Tax Surcharge for England. First announced at Budget 2025, the measure would add a new charge for residential properties worth £2 million and above from April 2028. According to the government notice published on GOV.UK, the policy is intended to correct long-running distortions in council tax by requiring the highest-value homes to contribute more towards local government services.
The consultation is being presented as a targeted response to a system the government says has been left unchanged since 1992. Ministers argue that, because council tax has not been reset in line with property values, some multimillion-pound homes can face lower bills than smaller properties elsewhere in England. That framing matters. Rather than reopening the whole council tax structure, the proposal focuses on the top end of the housing market and uses a surcharge to alter outcomes for a narrow group of taxpayers.
Under the consultation, homes above the £2 million threshold would be identified, valued and placed into a surcharge band. The government is also proposing five-yearly revaluations for properties within scope, with the next revaluation scheduled for 2033. For taxpayers, the valuation method will be one of the most important parts of the scheme. Liability will depend not only on crossing the threshold but on how the property is assessed, how banding works and what evidence can be used if an owner believes the valuation is wrong.
The government says fewer than 1% of properties would be affected and that the surcharge is expected to raise about £430 million a year for local government services. On that basis, the reform is designed as a selective revenue measure rather than a general increase in council tax across England. For most households, there would be no direct change. The practical effect would fall on owners of very high-value residential property, alongside advisers, conveyancers and local authority finance teams who would need to work with the new rules.
The consultation asks for views on the design and scope of the surcharge, as well as on deferral arrangements, billing, appeals, administration and enforcement. The inclusion of a deferral option is notable because it recognises that some households may hold high-value property while having limited income available to meet a higher annual bill. The operational questions are just as significant as the headline tax change. Local authorities will need a workable billing process, taxpayers will need a clear route to challenge valuations or liability, and the government will need an enforcement model that is proportionate and legally robust.
Exchequer Secretary to the Treasury Dan Tomlinson said the policy is intended to end cases in which a £10 million home in Mayfair pays less council tax than an ordinary family home in places such as Darlington or Blackpool. The government is using that comparison to make the case that the surcharge is about fairness as well as revenue. The immediate next step is consultation rather than implementation. Responses from taxpayers, councils, tax specialists, legal professionals and the property sector will shape the final design before the proposed start date of April 2028. For readers following the policy, the key documents to watch next will be the consultation response and the legislation that turns the proposal into an enforceable tax charge.