The UK has unveiled a new annual levy on properties valued at more than 2 million pounds ($2.63 million), a measure expected to generate around 0.4 billion pounds in the 2029–30 fiscal year, according to estimates released by the country’s budget watchdog on Wednesday ahead of the finance minister’s budget announcement.
The surcharge is scheduled to take effect in April 2028.
According to the OBR, homeowners with properties assessed at over 2 million pounds—based on 2026 valuations by the Valuation Office—will face a recurring annual charge on top of their existing local tax obligations.
The new system introduces four valuation-based tax bands, with the surcharge starting at 2,500 pounds for homes valued between 2 million and 2.5 million, and increasing to 7,500 pounds for properties worth 5 million pounds or more.
