Overview
- The annual charge sits on top of council tax and is paid by owners, ranging from £2,500 for £2m–£2.5m properties to £7,500 for homes valued at £5m or more, with intermediate bands at £3,500 and £5,000.
- Liability will be set using 2026 valuations, revalued every five years and uprated by consumer price inflation, with renters not liable.
- The government estimates fewer than 1% of homes will be affected and about £400m will be raised in 2029–30, with all receipts going to central government.
- The OBR forecasts market effects such as price ‘bunching’ below thresholds and full pass‑through into liable property prices, reducing the gross take of more than £600m by around £200m.
- Ministers will consult on scope, including trusts, companies and partnerships, and on support such as potential deferral for those struggling to pay, alongside separate 2‑point rises in tax rates on property, savings and dividend income.