Homeowners fear expanded mansion tax could hit 243,000 UK properties

The government’s high-value council tax surcharge, dubbed the mansion tax, will apply from April 2028 to homes valued above £2 million, charging between £2,500 and £7,500 annually. Ahead of the October 28 Budget, analysts warn Chancellor John Healey may lower the threshold to £1.5 million, expanding the net to roughly 243,000 properties, most of them in London and the South-East. Property experts and affected owners argue the policy unfairly targets long-time residents who bought homes for modest sums decades ago.

HMRC’s Valuation Office Agency is already reviewing properties in bands F, G and H, and non-compliance could lead to fines. Critics contend the expected £430 million a year revenue is negligible compared with overall tax receipts and will impose a heavy burden on retirees and low-income households.