Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Government Unveils Mansion Tax Consultation for High-Value Properties

The government has launched a consultation on the details of a new High Value Council Tax Surcharge, also referred to as a Mansion Tax. The measure, announced at Budget 2025, will apply to residential properties in England valued at £2 million and above, and is set to take effect from April 2028.

According to the government, the surcharge aims to address what it describes as unfairness in the current council tax system, where some high-value properties pay less council tax than smaller family homes. The new charge will affect less than 1% of properties and is expected to raise around £430 million per year to support local government services.

The consultation outlines how properties will be identified, valued, and placed in a band for the surcharge. Revaluations for properties worth more than £2 million will be carried out every five years, with the next revaluation scheduled for 2033. The proposals also include provisions for taxpayers to review the valuation of their property.

For letting agents and inventory clerks, the introduction of the Mansion Tax may impact clients with high-value portfolios and could influence property management considerations for homes at or above the £2 million threshold. The government states that the changes are intended to make the council tax system fairer and more reflective of current property values.