With plans to increase council tax for properties worth more than £2m now less than two years away, government calls for views on valuation process, billing and deferral options
The high value council tax surcharge (HVCTS), dubbed the mansion tax, is a new charge on residential properties worth £2m and above in England affecting around 1% of properties, with similar plans likely to roll out in Scotland and Wales.
The Valuation Office will publish a draft list of properties in scope of the charge in late 2027. To band properties accurately, this will be based on ‘reliable’ information about each property’s characteristics and recent sales of similar properties. This includes details such as property type, size, age, number of rooms and parking, alongside sales evidence.
The current council tax system means there are big discrepancies between council tax payments with large properties in central London paying less than the average Band D rates in many parts of the country. This new surcharge is an attempt to address this.
