Summary
Properties in England valued over £2 million will have a new extra tax starting in 2028, on top of existing council taxes. This new tax, often called a "mansion tax," is expected to generate around £400 million annually by 2029-2030. The money will go to the Treasury instead of local authorities.
Key Facts
- Properties over £2 million will have a new tax starting in 2028.
- The tax will add at least £2,500 annually, based on property value.
- There are four value bands for the tax, with the highest set at £7,500 for properties worth £5 billion or more.
- Most affected properties are in London.
- The Office for Budget Responsibility predicts the tax will raise about £400 million per year by 2029-2030.
- The tax is part of measures included in a budget plan by Rachel Reeves.
- The Treasury will receive the funds from this tax, not local councils.
- Properties will be assessed in 2026 for this tax, and band limits will adjust with inflation.
