Wed, 26 Nov 2025

Wed, 26 Nov 2025 Properties worth more than £2m in England face new tax

The surcharge begins at £2,500, rising to £7,500 for properties valued at more than £5m.

* A new surcharge will be introduced in 2028, targeting properties valued at over £2m, with a minimum charge of £2,500.
* The surcharge will have four bands: + Band 1: £2m-£2.5m (charge: £2,500) + Band 2: £2.5m-£3.25m (charge: £4,250) + Band 3: £3.25m-£5m (charge: £6,250) + Band 4: over £5m (charge: £7,500)
* The majority of affected properties are in London.
* The Office for Budget Responsibility expects the measure to raise around £400m per year by 2029-2030.
* The Institute for Fiscal Studies has criticized the proposal for not going far enough, calling for a revaluation of council tax bands.
* Estate agent Savills suggests that the introduction of the surcharge will have a "much less severe" impact on the housing market compared to an open-ended mansion tax.
* The Local Government Association has expressed concerns about the practical implementation of the surcharge and has called for clarity on how the funding raised will be used.
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