Guidance

High Value Council Tax Surcharge

The HVCTS levies a new charge on owners of residential property in England worth £2 million or more.

• From: HM Treasury
• Published: 26 November 2025
• Last updated: 28 October 2026
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  1. 28 October 2026

     Edited to reflect the conclusion of public consultation and publication of a summary of response document at Budget 2026. The response confirms that the government will introduce a deferral scheme; a series of discounts and exemptions; and a 100% premium on properties left empty and unoccupied for 12 months or more. This will be legislated for in Finance Bill 2026-27. Additional information has also been included on the valuation approach.

  2. 26 November 2025

     First published.

Documents

High Value Council Tax Surcharge

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Details

The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property in England worth £2 million or more in 2026, taking effect in April 2028. The charge will be additional to existing Council Tax liability. This measure is estimated to raise around £400 million of revenue per year from 2028/29.  Local authorities will collect this revenue on behalf of central government and will be fully compensated for the additional costs of administering this new tax. Revenue will be used to support funding for local services, with further consideration through the next Spending Review. This factsheet outlines the details of this new surcharge.