UK Treasury Consults on Extra Charge for Non-Resident Owners of High-Value Homes

The Treasury opened a consultation on Tuesday asking whether non-UK resident owners of homes subject to the new high-value council tax surcharge should pay an additional premium. The surcharge, announced in the budget, takes effect from April 2028. 5 million, £5,000 for homes up to £5 million, and £7,500 for properties above that level.

The charge sits on top of standard council tax and will increase annually with inflation.

The consultation does not specify the size of any premium or the number of owners who would pay it. Land Registry data and high-end market analyses indicate that 25 to 35 per cent of the estimated 165,000 homes liable for the surcharge are foreign-owned.

The premium would apply only to non-UK resident owners. A foreign national living in Britain for tax purposes would not face the extra charge. A government source said the measure targets properties that are often empty and whose owners do not contribute to the local economy.

Responsibility previously estimated the surcharge would raise about £430 million a year by the end of the decade. The forecast carries uncertainty due to behavioural changes, appeals, and enforcement risks. Homeowners with annual income below £35,000, savings of £16,000 or less, or who occupy a property as a disabled or severely mentally impaired person could defer payment until sale.

The Valuation Office Agency plans to publish a draft list of affected properties in late 2027. Homeowners will have eight months to challenge their valuation band before final bills are issued in March 2028. Tim Stovold, head of tax at Moore Kingston Smith, said disputes could last years and that homeowners must continue paying the surcharge while appeals proceed.