Advertisement
Britain will introduce an annual tax on residential properties valued over 2 million pounds starting April 2028. The surcharge, on top of current local taxes, will range from 2,500 pounds for homes in the 2-2.5 million band to 7,500 pounds for properties valued above 5 million pounds. Valuations will use 2026 prices and will be annually adjusted for inflation. The policy is expected to raise 0.4 billion GBP by 2029 30 and targets high value homeowners, marking the UK's return to discussions around a 'mansion tax.'
The UK government has announced a new annual tax targeting residential properties valued above 2 million pounds (approximately USD 2.63 million), set to take effect from April 2028. This surcharge will be in addition to existing local taxes and is expected to generate around 0.4 billion GBP in revenue by the 2029-30 fiscal year, according to the Office for Budget Responsibility (OBR). Advertisement
Under the proposed structure, properties in the lowest value band of 2 million-2.5 million pounds will attract a surcharge of 2,500 pounds annually, while homes worth 5?million pounds or more will face a 7,500 pound charge. The tax will be based on property valuations carried out by the Valuation Office Agency using 2026 prices. The amounts will be adjusted each year in line with consumer price inflation to ensure the tax remains relevant with market changes.
The move follows earlier debates in the UK about a 'mansion tax,' which faced criticism for its potential impact on high?value homeowners. By introducing this surcharge, authorities aim to target luxury property owners while securing additional revenue. Homeowners will need to consider this recurring cost when planning future investments in the high?end housing market.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
