Council tax shake-up: UK proposes surcharge on most expensive homes

First announced in Budget 2025, the measure would apply an additional charge to residential properties in England worth £2 million or more, targeting the top 1% of most valuable homes. Ministers say the reform will help ensure wealthier households pay a fairer share and support funding for local services.

According to the UK government, the current system is outdated and unfair, with property values not reassessed for decades.

“A £10 million mansion in Mayfair should not be paying less council tax than an ordinary family home in Darlington or Blackpool,” the Exchequer Secretary to the Treasury, Dan Tomlinson, said.

He added that the reform would “tackle historic unfairness” and help return money to communities across the country.

The surcharge is expected to raise around £430 million a year and will take effect in April 2028 if approved. Properties above £2 million will be revalued every five years, with the next review due in 2033.

The consultation will run for eight weeks and covers how the tax will be designed, billed, enforced, and whether payment deferrals will be available.

Previously, Qazinform News Agency reported that Kazakhstan and the UK discussed enhancing trade and investment cooperation.