The campaign against HVCTS – The "High Value Council Tax Surcharge"

"HVCTS" – a new annual
"Mansion Tax"
on your home.
Not your income.

The High Value Council Tax Surcharge (HVCTS) imposes an annual levy of up to £7,500 on homeowners in England — based on 2026 property valuations. We believe this policy is poorly designed, unfair in its application, and harmful to established communities.

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£7,500 Maximum annual charge
165,000 Homeowners affected
Apr 2028 Planned introduction
£2m Threshold — 2026 values
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax
UK property affected by the Mansion Tax

This campaign calls on the Government to suspend the HVCTS consultation, reconsider the threshold, and establish robust exemptions before any legislation proceeds.

Understanding the Policy

What is HVCTS?

The High Value Council Tax Surcharge (HVCTS) was announced in the Autumn Budget on 26 November 2025. Chancellor Rachel Reeves described it as a measure to address "longstanding imbalances" in the property tax system.

From April 2028, homeowners of residential properties in England valued at or above £2 million — based on 2026 Valuation Office Agency assessments — will pay an annual surcharge on top of their existing council tax bill.

The Government estimates the HVCTS will affect approximately 145,000 to 165,000 homeowners, with an annual surcharge ranging from £2,500 to £7,500. The tax would raise a total of £400 million per annum, which is equivalent to less than 15 hours' worth of HMRC's annual tax take.

A public consultation on detailed rules, reliefs and exemptions was due in early 2026. The outcome of this consultation will significantly shape how the policy operates in practice.

Property value (2026) Annual surcharge
£2m – £2.5m
Lower band
£2,500
per year
£2.5m – £3.5m
Mid band
£3,500
per year
£3.5m – £5m
Upper-mid band
£5,000
per year
£5m and above
Highest band
£7,500
per year

Rates will increase annually in line with CPI from 2029–30. Paid by the owner, not the occupier. Social housing is excluded.

Our Position

Why we oppose this tax

Our campaign does not oppose fair taxation. We oppose this specific policy on the grounds that it is arbitrary in design, regressive in its real-world impact, and inadequately thought through.

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Illiquid assets cannot produce income for the tax levy

Many affected homeowners are long-term residents or retirees who bought their properties decades ago. Rising house prices have placed them above the £2 million threshold, but they do not have corresponding liquid income to meet an annual bill of £2,500 to £7,500.

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A London and South East problem

The £2 million threshold disproportionately affects certain postcodes — particularly in London, Richmond, Esher, Pimlico and parts of the South East — where ordinary family homes have reached this valuation due to local market conditions, not exceptional wealth.

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Flawed valuation process

The 2026 VOA valuation exercise will be the first mass residential revaluation of its kind. The methodology, appeal process, and accuracy of these assessments remain unclear. Homeowners may find themselves in the wrong band with limited ability to challenge it effectively.

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Threshold creep over time

The £2 million threshold is fixed at 2026 values. As house prices rise, more properties will cross this boundary at future revaluations. Rates also increase with CPI each year. There is a real likelihood that the £2m threshold will be reduced, as it was with ATED, which started at £2m and within three years was lowered to £500,000. What is described as a tax on the very wealthiest risks becoming a much broader levy.

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Market distortion

Buyers and sellers of properties near the £2–£3 million range already report that the HVCTS is influencing negotiations. This is creating uncertainty in the prime and near-prime property market and discouraging investment, particularly for international buyers considering the UK.

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Insufficient exemptions

No confirmed exemptions exist yet for estates, trusts, tied properties, or homes used in connection with employment. The consultation has yet to resolve how the charge will apply to complex ownership structures, leaving thousands of affected parties in legal uncertainty.

Real Impact

Who will be affected

The Government's framing presents this as a tax on the wealthy few. In practice, the picture is considerably more complex.

Long-term homeowners

Families who bought at lower prices 20–30 years ago and have seen valuations rise due to market forces beyond their control — not new wealth.

Retirees on fixed incomes

Pensioners whose primary or sole asset is their home. An annual charge of £2,500+ could represent a significant proportion of their disposable income.

Rural and farm properties

Farmhouses and rural properties with land may be captured by the threshold, yet generate no corresponding cash income from which to pay the surcharge.

Tied accommodation

Employees whose occupation requires them to live in high-value properties — such as certain clergy, staff, or heritage custodians — face an uncertain position.

"The term 'mansion tax' implies lavish properties owned by the ultra-wealthy. In reality, many homes caught by the £2 million threshold are far from grand estates — they are ordinary family homes in parts of London where prices have simply risen."
Chan Neill Solicitors, Property Law Analysis, December 2025

Key Dates

Legislative timeline

Understanding the legislative timeline is critical to effective campaigning. The consultation window is the most important opportunity to influence the final shape of this policy.

26 November 2025

Budget announcement

Chancellor Reeves announces the HVCTS in the Autumn Budget, with headline rates and a 2028 implementation date.

Early 2026

Public consultation opens

The Government has committed to consulting on reliefs, exemptions, and complex ownership structures. This is the critical window for campaign submissions.

2026

VOA valuation exercise

The Valuation Office Agency begins identifying qualifying properties above £2 million. These 2026 valuations will form the basis for charges from 2028.

2026–2027

Finance Bill legislation

Detailed legislation expected to pass through Parliament. Parliamentary scrutiny and committee stages offer further opportunities to raise concerns.

1 April 2028

HVCTS takes effect

First charges fall due. Rates will increase with CPI from 2029–30 onwards.

Get Involved

Take Action

Signing the petition is just the start. This campaign needs your voice, your time, and your support to be effective.

Contact the Campaign

Get in touch with our team, ask a question, or let us know how the HVCTS will affect you. Your story matters — personal testimonies from affected homeowners are among the most powerful contributions to the consultation process.

📧 [email protected]

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Write to your MP

A personal letter from a constituent is one of the most effective ways to influence parliamentary debate. Download our template letter and make your voice heard directly with your MP.

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Volunteer with SHOUT

We are actively looking for volunteers to help grow this campaign. Whether you can give an hour a week or are able to take on a more substantial role, there is a place for you.

  • Help with social media and outreach
  • Research and policy monitoring
  • Community liaison and local coordination
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  • Legal, financial or property expertise
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Other ways to make a difference

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Follow the legislation

We will track the course of the legislation as it progresses through Parliament and update this section — watch this space!

Legislative tracker — coming soon

Evidence Base

Research

Independent analysis, academic research, and expert commentary on the HVCTS and its implications.

Research and reports will be published here. Please check back soon.