Chancellor Rachel Reeves is expected to introduce a levy aimed at some of Britain’s most expensive homes as part of her upcoming Budget. The measure is being positioned as a tax on wealthy property owners and is set to form a central piece of her plan to balance public finances.
Reports indicate that the levy would focus on high-value homes, often described as a 'mansion tax'. The proposal would involve a revaluation of properties in council tax bands F, G and H, with approximately 100,000 homes likely to be affected by an additional surcharge.
The levy was initially discussed as a 1% charge on homes valued at £2m or above, although expectations now suggest a ceiling of £5,000 may be introduced due to concerns over potential impacts on the London housing market.
The measure forms one of several wealth-focused tax plans thought to be under consideration as part of the government's attempt to close a significant gap in government spending while signalling a tougher stance on high-income sectors.
Further details are set to be confirmed when the Budget is unveiled on Wednesday, with the government expected to frame the changes as a strategy to rebalance taxation while protecting wider economic stability.
