High Value Council Tax Surcharge: design and delivery

Overview

Ministerial Foreword

This consultation seeks views on the detailed design of the High Value Council Tax Surcharge (HVCTS) announced in the 2025 Budget.  

In the Council Tax system, a band D property in Darlington or Blackpool, today worth around £400,000, pays £2,400 to £2,600 annually. A mansion in Mayfair valued at £10 million in Band H pays around £2,100. Previous governments have known how unjust this is, but failed to act. Through the HVCTS, those who own the most valuable properties in the country will pay their fair share.

Fewer than 1% of residential properties in England will attract the HVCTS, which will be paid by owners [1]. Existing Council Tax bills will continue to be paid alongside.  

Revenue raised through the HVCTS will be used to support funding for local government services, contributing to the government’s wider programme to put local government finances back onto a sustainable footing.   

We welcome feedback on the detailed design set out in this consultation. We also welcome views from local government, homeowners, tax experts, legal professionals and those in the property industry about the technical design and impact of the tax.  

Introduction 

In the 2025 Budget, the government announced a new High Value Council Tax Surcharge (HVCTS) on owners of residential property in England worth £2 million and above. The HVCTS increases the tax paid by owners of high value residential property, raising revenue from those with the 1% most valuable properties in England to support funding for local government services and to reduce the largest inequalities in the Council Tax system. 

This consultation is seeking views on the detailed design of the HVCTS. The structure of the document is as follows:  

• chapter 1 provides an overview of the design of the HVCTS 
• chapter 2 seeks views on proposed scope of the HVCTS 
• chapter 3 seeks views on a deferral mechanism, to support those who cannot pay 
• chapter 4 seeks views on the billing process  
• chapter 5 seeks views on the proposed appeals process  
• chapter 6 seeks views on administration and enforcement mechanisms 
• chapter 7 seeks views on the equalities impacts of the proposed approach

Annex A sets out the list of questions this consultation seeks views on. Annex B provides detail on the valuation approach. Annex C provides further detail on the grounds for appeal. You can view each of these annexes here, or at the end of this survey.

Why your views matter

Geographical scope

These proposals relate to England only.

Basic information

Body/bodies responsible for the consultation:

• Ministry for Housing, Communities and Local Government (MHCLG)
• His Majesty’s Treasury (HMT)
• His Majesty’s Revenue and Customs (HMRC) Valuation Office

Duration

This consultation will last for eight weeks from 19/05/2026 until 14/07/2026.

Enquiries

For any enquiries about the consultation please contact: hvcts@communities.gov.uk

How to respond

Please complete this online survey to respond.

Alternatively you can email your response to the questions in this consultation to hvcts@communities.gov.uk. If you are responding in writing, please make it clear which questions you are responding to.

Written responses should be sent to: Ministry of Housing, Communities and Local Government, 2 Marsham St, London SW1P 4DF

When you reply via email or post it would be very useful if you confirm whether you are replying as an individual or submitting an official response on behalf of an organisation and include:

• your name
• your position (if applicable)
• the name of organisation (if applicable)
• an address (including postcode)
• an email address
• a contact telephone number

For more information about who we will share your responses with and a full privacy notice, please see here.