Overview
- From April 2028, owners of properties valued at £2 million or more will pay a council tax surcharge in four flat bands ranging from £2,500 to £7,500, with receipts going to central government.
- The Treasury says the levy targets fewer than 1% of properties and is forecast to raise more than £400 million by 2031.
- Land Registry analyses identify over 26,500 sales at or above £2 million since 2020, heavily concentrated in London, including 3,832 in Westminster and 3,525 in Kensington and Chelsea, with Elmbridge in Surrey leading outside the capital on 939.
- Surrey alone has seen nearly 2,000 qualifying sales in recent years, with 160 in the top £5 million-plus band and a cluster in affluent Elmbridge, Waverley, and Guildford.
- Government documents confirm social housing is out of scope—more than 110 such high-value homes are identified in England—while ministers prepare to consult on reliefs, including possible deferral until sale or on death, as political criticism intensifies in councils and among high-profile figures.