Mansion Tax 2028: What It Means for £2m+ Homeowners
This guide will help you to cut through the headlines. We explain who’s affected, how it works, what the bands are, and what you can do now to prepare—including how to check your home’s value.
If you own a property valued over £2 million in England, the new Mansion Tax (officially the High Value Council Tax Surcharge) will likely affect you. The charge starts in April 2028, with valuations based on what your property is worth in 2026.
This guide will help you to cut through the headlines. We explain who’s affected, how it works, what the bands are, and what you can do now to prepare - including how to check your home’s value.
Key Facts: Mansion Tax at a Glance
Applies to homes worth over £2 million (as of April 2026)
Comes into effect April 2028
Annual surcharge of £2,500 to £7,500, depending on value band
Separate from council tax (money goes to the Treasury)
Property valuations will be handled by the Valuation Office Agency (VOA)
What Is the Mansion Tax?
The Mansion Tax is a new charge for high-value homes in England. From 2028, any property valued at more than £2m (using 2026 prices) will pay an extra annual fee on top of council tax.
This tax is aimed at addressing wealth inequality in the housing system. It was announced in the 2025 Autumn Budget and is expected to affect fewer than 1% of properties.
When Does the Mansion Tax Start?
The tax begins in April 2028, but valuations will be based on April 2026 values. That gives homeowners two years to plan, or to sell before the tax kicks in.
Purplebricks is already seeing signs of sellers planning ahead. As Sales Director Marc Russel says:
“Most sellers are not panicking, but they are starting to think more carefully about timing and pricing.”
How Much Is the Mansion Tax?
There are four bands based on your property’s value:
Property Value Band | Annual Surcharge |
£2m – £2.5m | £2,500 |
£2.5m – £3.5m | £3,500 |
£3.5m – £5m | £5,000 |
£5m+ | £7,500 |
The government has confirmed that the surcharge will be uprated annually in line with the Consumer Price Index (CPI). That means the bands won’t stay fixed, they’ll rise slightly every year to account for inflation.
For example, if inflation is 4% in 2027, then the £2,500 annual surcharge would increase to £2,600 in 2028.
Original Charge | Annual CPI (4%) | Adjusted Charge |
£2,500 | +4% | £2,600 |
£3,500 | +4% | £3,640 |
£5,000 | +4% | £5,200 |
£7,500 | +4% | £7,800 |
This adjustment happens every year, so the longer you stay in the home, the more you may pay over time.
Who Will Pay the Mansion Tax?
The legal owner of the property will be responsible for paying the Mansion Tax, not the occupier or tenant.
So, if you’re renting a high-value home, you won’t be affected by the surcharge. It’s the landlord who will be liable, even if they don’t live in the property.
It also won’t follow the same rules as regular council tax. Although the charge will be collected alongside your council tax bill, the money won’t go to your local authority (it will be paid directly to the Treasury).
This applies whether the property is your main home, a second home, or a rental property. If it’s valued over £2 million (based on 2026 prices), the owner is on the hook for the extra charge starting April 2028.
How Will My Home Be Valued?
The Valuation Office Agency (VOA) will identify homes likely to be affected and carry out valuations. These will be:
Based on April 2026 market value
Largely desk-based using sales data, planning records and satellite imagery
Reassessed every five years
It's worth noting that in-person inspections may happen if a property lacks sufficient data. For unique, high-end homes, which often don’t have easy comparables, desktop estimates may not reflect true market value. That’s why getting your own valuation is important.
Should I Get My Own Valuation?
Yes. If your home could be close to a tax band threshold, it’s worth knowing where you stand.
A professional valuation from a qualified estate agent or a RICS surveyor can help you:
Check the 2026 value before the VOA does
Gather evidence to challenge your band, if needed
Plan future improvements without tipping into a higher band
Book your free house valuation
What If I Think the Valuation Is Wrong?
The government is expected to introduce a formal appeals process. Having your own valuation from an expert will put you in a stronger position to challenge the decision, especially if your home is close to a band edge (e.g. just above £2m).
Will This Affect Property Prices?
Possibly, especially around the band thresholds. The Office for Budget Responsibility (OBR) predicts we’ll see “price bunching,” where properties valued just above a tax band are strategically listed below the threshold to avoid the surcharge.
For example, a home valued at £2.05 million may be marketed closer to £1.99 million to stay under the first band and avoid the £2,500 annual charge. This kind of pricing adjustment could lead to downward pressure on values in the lower Mansion Tax bands, particularly in areas where properties sit close to the £2 million mark.
However, this effect is expected to be most noticeable in London and the South East, where the majority of high-value homes are concentrated.
If you’re considering selling a high-value property before 2028, it’s worth getting an expert local valuation early and understanding how the tax might shape buyer behaviour in your area.
Could This Change My Moving Plans?
For some, yes. Downsizers and sellers with properties just over £2m may decide to move sooner. But others will choose to stay and factor in the cost long-term.
If you’re planning to sell before 2028, now is a good time to get a clear picture of your options.
Introducing the Purplebricks Mansion Package
Selling a high-value home doesn’t need to come with a high agent fee. The Purplebricks Mansion Package is built for homes over £2m. You’ll get:
Premium marketing
Dedicated expert agents
Serious buyers
Transparent pricing
All for a fixed fee, not a percentage.
Sell your mansion the smart way
Final Thoughts
The Mansion Tax is on the horizon, and planning ahead could save you thousands. Whether you’re thinking of selling, staying, or just want to understand your liability, the next steps are simple: