The Chancellor has taken aim at homeowners across the country who have been able to afford higher-value properties.
The Chancellor has slapped owners of higher value homes with another tax (Image: PA )
Rachel Reeves’s new hammer blow tax on higher value homes will heavily impact London and the South East, but a new map reveals that every part of the country could be affected. Owners of properties valued at more than £2 million are set to be hit with a surcharge of at least £2,5000 from 2028 in what has been dubbed the “mansion tax”.
The High Value council tax Surcharge was announced in Ms Reeves’s Budget and will be charged on top of the existing council tax. However, unlike the council tax, the surcharge will go directly to the central Government.
The Treasury said a body called the Valuation Office will decide which properties are worth £2 million and therefore liable for the new charge. The number and location of homes that will be impacted are therefore unknown at this stage; however, an exclusive analysis of Land Registry data by the Reach Data Unit has revealed every home in England and Wales that has sold for over £2 million in the last five years.
Scroll down for our interactive map to see if your home could be affected…
The Chancellor has taxed homeowners in higher value properties (Image: AP )
A total of over 26,500 homes cost their new owners on or above the mansion tax threshold since the start of 2020. More than two thirds of those (67%) have been in London.
Westminster has seen a total of 3,832 homes sold for £2 million or more in the last five years. That works out as 14% of the total, or one in every seven across the country. Kensington and Chelsea has had the next highest number with 3,525. That’s around one in every eight (13%) of the total in England and Wales.
Camden has the next highest number with 1,482 (6%), followed by Wandsworth with 1,412 (5%), Hammersmith and Fulham with 1,212 (5%), and Richmond upon Thames with 1,068 (4%).
Elmbridge in Surrey has the highest number outside of the capital with 939 homes.
Bournemouth, Christchurch and Poole tops the list of places outside of the Home Counties with 241, while Cheshire East is top outside of the South with 183.
You can see all of the homes sold for £2 million or more in the last five years by using our interactive map.
Currently the average band D across England is £2,280. That’s £250 more per year, the Treasury says, than a £10 million property in Mayfair, based on the band H charge in the City of Westminster.
The new surcharge will be broken up into five bands. Homes valued at between £2 million and £2.5 million will pay £2,500 a year. Those valued between £2.5 million and £3.5 million will pay £3,500 a year. Homes worth between £3.5 million and £5.0 million will pay £5,000, and those over £5 million will pay £7,500.
The surcharges will increase in line with CPI inflation each year from 2029-30 onwards.
