UK announces new tax on expensive homes from 2028

Britain announced a new annual tax on homes worth more than 2 million pounds ($2.63 million), expected to raise 0.4 billion in 2029-30, according to estimates from the country’s budget watchdog published on Wednesday ahead of the finance minister’s budget statement.

The new surcharge will come into force in April 2028.

The OBR said owners of homes valued at over 2 million by the Valuation Office, in 2026 prices, will be liable for a recurring annual charge which will be additional to existing local tax liability.

Under the changes, there will be four price local tax bands with the surcharge rising from 2,500 pounds for a home valued in the lowest 2 million to 2.5 million band, rising to 7,500 pounds for a property valued in the highest band of 5 million or more.

The values will be uprated in line with consumer price inflation every year, the document showed.