Homeowners with high-value residential properties are set to face thousands more a year in council tax following the Autumn Budget announcement.
Homes in England worth £2million or more will see their bills include a “High Value Council Tax Surcharge” from April 2028, the Chancellor Rachel Reeves has announced.
Charges would be based on updated valuations, designed to identify properties above the threshold – fewer than 1% according to the government – and would be charged in addition to Council Tax.
The Budget papers outline that new charges would start at £2,500 per year, rising to £7,500 for properties valued over £5million, levied on property owners rather than occupiers – with local authorities to be compensated for collecting the revenue on behalf of central government.
Alice Altounyan, Thrings’ Head of Residential Property, said: “While this concept won’t necessarily come as a shock given all the pre-budget speculation, it does throw up some questions. How and when will these valuations of so-say high value homes be carried out, the cost of that exercise, and how this will affect transactions of properties close to or exceeding the £2m threshold, remains to be seen, but it looks like the OBR are anticipating an effect on the property prices of affected homes.
“Our advice to potential buyers is to simply consider whether these costs fit within your budget if you are considering properties valued around the £2m+ mark, and to seek legal and professional advice at an early stage”
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