By Lesley Warren, Head of Residential Property
Chancellor Rachel Reeves has now delivered the Autumn Budget and confirmed that the much anticipated “mansion tax” (officially known as the a “High Value Council Tax Surcharge”) will be imposed from April 2028.
What do we know?
This levy will catch properties valued at £2 million contrary to speculation that the trigger value would be £1.5 million. The tax will be recovered via a new Council Tax surcharge and there will be 4 bands ranging from £2500 a year for properties valued between £2-2.5 million up to £7500 a year for properties valued at £5 million and above.
What does this mean for owners?
The BBC estimates that some 100,000 properties will need to be revalued so it will likely take time for property owners to have clarity as to the banding. Sellers may face immediate pressure to reduce pricing where properties are valued just north of £2 million or just above any of the band thresholds. This squeeze on pricing might discourage some owners from selling but equally there will be asset rich / cash poor owners that need to sell.
How can Goughs help?
Our team of trusted advisors can help sellers navigate the sales process and price negotiations. If you would like more information, please contact one of our property experts today.
Post-Budget Briefing
Why not join us at our exclusive ‘Post Budget Briefing?’
- To be hosted alongside Fidelius Financial Advisors and Pearson May Accountants
- Wednesday 7th January 2026, from 6pm
- At the beautiful Hartham Park Estate, Corsham
- BOOK NOW