The Chancellor has announced a property tax shake-up with a new charge on expensive homes and a tax hike targeting landlords.

Rachel Reeves said she was introducing a high value council tax surcharge in England on homes above £2 million from April 2028.

The move is intended to target more expensive homes to make the system fairer – with the typical family home in England currently paying more per year in council tax than a £10 million property in London’s Mayfair , according to the Treasury.

There will be four price bands with the surcharge starting at £2,500 a year for properties worth more than £2 million, and rising to £7,500 for properties worth more than £5 million.

The charge will sit on top of usual council tax and will be applied to property owners, rather than tenants.

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