From April 2028, owners of houses and flats in England worth more than £2m will pay a new annual charge on top of council tax. The measure was announced in the Autumn 2025 Budget; officially it is a high-value council tax surcharge, known informally as the mansion tax.
The charge depends on the value of the home and comes in four steps:
| Home value | Charge per year |
|---|---|
| £2–2.5m | £2,500 |
| £2.5–3.5m | £3,500 |
| £3.5–5m | £5,000 |
| over £5m | £7,500 |
Homes will be valued for the tax in 2026, and it will be collected alongside ordinary council tax from April 2028. About 100,000 homes across England fall within scope — fewer than 1% of the housing stock. Around half of them are in London, the rest mostly in the south-east. The government has promised to set out the detail after a consultation in early 2026.
For a foreign buyer the takeaway is practical: at the top of the London market, a one-off cost at the deal is joined by a standing charge for years ahead. Near the threshold, the gap between a £1.95m home and a £2.05m one is not only the price but also £2,500 every year. The full breakdown of costs at the deal and per year is in the article on the cost of buying for a non-resident.
