DeVere Group chief executive Nigel Green is calling for the UK government to scrap the High Value Council Tax Surcharge before its scheduled implementation in April 2028. Green argues the tax disproportionately targets ordinary homeowners who have seen property values rise over time rather than those with significant liquid wealth.
Costs and criteria for the new surcharge
The surcharge will apply to homes in England valued above £2 million. Properties between £2 million and £2.5 million will face an annual charge of £2,500, with this amount rising in steps to £7,500 for homes valued above £5 million. The Treasury estimates fewer than 1% of English homes will cross this threshold.
Green contends the tax fails to assess whether homeowners have the income to pay these annual bills. He noted that many homes were purchased decades ago by individuals earning everyday salaries.
“Many of these homes were bought decades ago by people on everyday salaries. They’ve simply watched prices rise around them,” Green said. “It’s a tax on paper wealth, and it takes no account of whether people can actually afford it.”
“Picture a widow living on her pension in the house she bought in the 1980s. She could soon be handed a bill of up to £7,500 every single year, on gains she can only reach by selling her home,” he said.
Valuation methods and market conditions
According to the Treasury, revaluations will occur every five years, with charges rising in line with inflation from 2029/30. Draft bands are due to be published in autumn 2027, with the first bills issued in March 2028.
A document obtained by The Times under Freedom of Information laws details how inspectors will determine liability. Inspectors may photograph properties from public highways, even where owners object. Internal and external photographs are described as essential to verify alterations or extensions. Inspectors must obtain permission before entering a home; if an owner refuses, the refusal and the owner’s name must be recorded.
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HM Treasury stated that most properties can be banded using existing information from the Valuation Office, with visits required only in limited circumstances. The valuation approach comes as London’s unsold high-end flats have tripled since 2016.
Green warned that the scope of the tax is likely to expand over time. “The charges rise with inflation. Unless the threshold keeps up with house prices too, more families will be dragged in with every revaluation,” he said.
The implementation of the tax occurs against a backdrop where the UK housing sales outlook has weakened to a three-year low. Green argued that scrapping the tax “would cost the Government relatively little in revenue and win back a great deal of trust.”
Government officials defended the measure, stating that the approach is well-established and used to ensure fair and accurate banding for millions of homes for council tax. In most cases, properties are valued without the need for a visit.
“The surcharge addresses a longstanding unfairness where a Band D home in Darlington pays more in council tax than a £10 million mansion in Mayfair and will apply to less than 1% of properties in England,” a government spokesman said.
Methods for Assessing Property Liability
Officials will decide which homes owe the surcharge using a document obtained under Freedom of Information laws. Inspectors may take photos from public roads, even if owners object. They must ask permission before entering a home.