Government Launches Consultation on Mansion Tax

The government has launched a consultation on a new High Value Council Tax Surcharge (HVCTS), popularly being called the “Mansion Tax,” as part of plans to make England’s council tax system “fairer.” First announced in the 2025 Autumn Budget, the tax would apply to residential properties worth £2 million and above and is expected to affect fewer than 1% of homes across the country.

This article will look at what the consultation is, what it covers and who can provide suggestions.

What is the Mansion Tax Consultation About?

This Mansion Tax consultation is a review of how the High Value Council Tax Surcharge will be designed and implemented. In simple terms, it is the stage where the government seeks feedback from stakeholders before finalising the rules.

The consultation began on 19 May and sits within the wider reforms announced in the Autumn Budget 2025. It is primarily intended to gather input to ensure the policy is workable, fair, and properly structured before it is introduced.

To achieve this, the consultation explores a range of practical and technical issues. These include how high-value homes will be identified and valued, how the surcharge will be structured, and how it will be enforced. It also considers whether homeowners should have the ability to challenge valuations and whether a deferral mechanism should be available for those unable to pay immediately.

The outcome of this process will determine the final shape of the surcharge ahead of its planned introduction in April 2028.

Who Can Give Feedback on the Mansion Tax & How?

The government is inviting feedback from a wide range of groups, with a particular focus on those most directly involved in property taxation and housing policy. This includes taxpayers, local authorities, tax professionals, legal experts, and stakeholders from the real estate sectors. The aim is to ensure the final design reflects practical insights from both industry and public administration.

Those wishing to be a part of the consultation and provide their feedback can do so by participating in an online survey. Alternatively, they can also email their answers to the questions (posed by the survey) to hvcts@communities.gov.uk. They can mail their responses too to:

The government has asked those responding by email and post to confirm whether they are replying as an individual or on behalf of an organisation, and include the following details:

• Name
• Position (if applicable)
• Name of the organisation (if applicable)
• Address, including postcode
• Email Address
• Contact number

This consultation for the High Value Council Tax Surcharge is open until 11:59 pm on 14 July 2026. Stakeholders have till then to comment on areas like valuation, exemptions, definitions of ownership, billing processes, enforcement, etc.

Why is the Government Introducing the Mansion Tax?

The government is introducing the Mansion Tax because it believes the current Council Tax system needs reform to improve fairness.

Council Tax is still based on property valuations from the early 1990s. That means the tax a property pays today may not be based on its current worth.

The problem is that house prices have changed dramatically over the past three decades, but the valuation that determines their Council Tax bill has not changed with them. This means two homes that may once have been valued similarly can now be worth vastly different amounts, while still paying relatively similar levels of Council Tax.

For example, a property that has grown into a multimillion-pound home over time may not pay much more Council Tax than a far less valuable property because both are still tied to an outdated valuation structure.

The government argues that this has weakened the connection between modern property values and the amount of tax paid. The Mansion is intended to address this by applying an additional charge to residential properties in England worth £2 million and above.

Alongside improving fairness, the measure is also expected to raise around £430 million per year to support funding for local government services.

Conclusion

With the consultation now underway, homeowners, tax professionals, and property stakeholders have a limited window to understand how the proposed HVCTS could affect them and influence how it is ultimately designed.

For those who own high-value property in England, the key takeaway is that the government is moving beyond broad policy announcements and into the practical details of implementation. As the consultation progresses towards its July deadline and the planned 2028 rollout, affected stakeholders should closely monitor developments, review potential valuation implications, and consider participating in the consultation process while the policy is still open to change.