- within Real Estate and Construction topic(s)
- in United States
- with readers working within the Transport industries
Following the 2025 Budget announcement, Rachel Reeves has announced that the government will introduce a 'High Value Council Tax Surcharge' (HVCTS) - a new charge on owners of residential property in England worth £2 million or more, starting in 2028/29.
It seems that Local Authorities will collect this HVCTS within their existing Council Tax arrangements with the revenue generated being used to support local government.
The details will be consulted in the new year. It has been stressed that this is a levy on property owners rather than occupiers.
But here's the pickle... almost all tenancy agreements of all properties (even those worth over £2 million) require the tenants to pay the Council Tax; and Council Tax bills are sent directly to the tenants. So, who will end up paying the HVCTS (or Mansion Tax)? The “owners” or their tenants?
Presumably, the consultation next year will pick this up and the Local Authorities will in fact have to go to the expense of sending out two bills … One “normal” Council Tax bill to the tenant and another HVCTS bill to the “owner”.
It will be interesting to see what comes out of this consultation and how the government will protect renters from incurring these additional costs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]