The government plans to introduce a High Value Council Tax Surcharge on owners of residential property in England valued at £2 million or more, starting in April 2028. Ministers say a public consultation on the detailed design will run in early 2026, with the final shape of the policy determined after that process.

Crucially, eligibility will not be based on today’s Council Tax bands, which still reference 1991 values. The Valuation Office Agency will run a separate targeted valuation in 2026; any home assessed at £2 million or above will be placed into one of four new HVCTS bands. The government has been explicit that bands F, G and H will not be used to determine eligibility.

This is a standalone charge alongside Council Tax rather than part of it. Existing Council Tax bands remain unchanged, and a change in a property’s Council Tax band will not affect whether the surcharge applies. Equally, an HVCTS band will not alter a property’s underlying Council Tax band.

For high‑net‑worth homeowners, the key point is timing. There is no immediate bill: the earliest cash impact would be from April 2028, after the 2026 valuation and the consultation outcome. That creates a multi‑year planning window to map liabilities and build the cost into household budgets.

Market exposure is likely to cluster in prime London and the South East, with notable pockets in affluent regional centres and desirable rural areas. The 2026 valuation date matters: properties that cross the £2 million threshold by then could fall into scope even if they sit just below it today.

Consider a family with a £2.2 million townhouse in Wandsworth. The VOA’s 2026 assessment would determine the property’s HVCTS band, but the actual surcharge rate is not yet set. In practice, owners will need scenario models until ministers confirm the bands and rates after consultation.

Take another example: a second home in the Cotswolds currently valued at around £2.05 million. Because the measure is framed around ownership of residential property at or above the threshold, not around main‑residence status, such properties are expected to be in scope-subject to final policy decisions following consultation.

Local authority finance teams will view HVCTS as a potential new revenue line from 2028/29, sitting alongside but separate from Council Tax. Forecasting will hinge on the eventual rates, the distribution of £2 million‑plus stock within each billing area, and any reliefs or exemptions that ministers decide to include.

Property investors and landlords with individual units above £2 million should review liquidity and ownership structures well before the 2026 valuation. Keeping clear records of significant improvements and local comparables may prove useful if the consultation sets out a formal route to challenge valuations.

According to the government’s announcement and published fact sheet, four HVCTS bands and a 2026 valuation timetable are confirmed, while rates, reliefs and administration will be shaped through consultation in early 2026. Until then, the practical takeaway is simple: current Council Tax bands stand, and any future HVCTS liability will be determined by a fresh VOA valuation.