Autumn Budget: Mansion Tax details and exemptions revealed
Summary
The Government has confirmed that the High Value Council Tax Surcharge, described as a Mansion Tax, will begin at the £2 million threshold, with bills expected from March 2028. The consultation response also sets out proposed deferral arrangements, exemptions for certain property types, and penalties for failing to provide valuation information when requested.
Why it matters
Surveyors may be asked to support valuation-related enquiries, especially where properties are near the £2 million threshold or where local authorities seek information to identify liable owners. The measure could also influence demand, pricing behaviour and transaction times in the upper end of the residential market.
Key points
- High Value Council Tax Surcharge will start at £2 million, not £1.5 million.
- Bills are expected to begin from March 2028.
- Deferral may be available for households with income of £35,000 or less, capital savings of £16,000 or less, or where the main home is occupied by a disabled or severely mentally impaired person.
- Exemptions include student halls, care homes, long-stay hospital accommodation, hospices, MoD barracks, some diplomatic property, domestic violence refuge accommodation, farmhouses and charitable property.
- Penalties of 10% and then 30% of annual liability are proposed for failure to provide valuation information within specified timescales.
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