Huge change to council tax with four new categories and £7,500 annual charge

Chancellor Rachel Reeves announced the so-called 'mansion tax' measure during Wednesday's Budget speech

A “high value council tax surcharge” will be introduced on properties worth more than £2 million, a so-called “mansion tax”. Four price bands will be introduced, rising from £2,500 for a property valued between £2 million to £2.5 million, to £7,500 for a property valued at £5 million or more, all uprated by inflation each year.

It will raise £0.4 billion in 2029-30, with all money going to central Government, rather than local authorities as usually happens with council tax. Chancellor Rachel Reeves confirmed the new measures in her Wednesday lunchtime Budget speech.

Ms Reeves also announced taxes targeted at landlords, telling the Commons: “Currently, a landlord with an income of