The government has launched a consultation on the details of the new High Value Council Tax Surcharge to make the system fairer for households across the country.

The move to introduce a so-called Mansion Tax, announced at Budget 2025, will mean the 1% most valuable properties pay high tax.

Council tax has remained untouched for decades and has not been readjusted as property values increase. That means that under this system, a multimillion pound mansion could be paying less council tax than a small family home.

The government is setting out the details for the new charge on owners of residential property in England worth £2m and above to address what it sees as “this unfairness”. The consultation also outlines how properties will be identified, valued and placed in a band for the surcharge.

Dan Tomlinson, exchequer secretary to the Treasury, said: “A £10m mansion in Mayfair should not be paying less council tax than an ordinary family home in Darlington or Blackpool.

“This change tackles historic unfairness, so that those with the most valuable properties pay their fair share, helping to rebalance the system and putting money back into communities up and down the country.”

Revaluations of properties worth more than £2m will be carried out every five years, with the next revaluation being held in 2033, ensuring that the tax remains fair and up to date with house prices.

The consultation also sets out proposals for taxpayers to review the valuation of their property. The charge, which will affect less than 1% of properties, will come in from April 2028 and is expected to raise around £430m per year to support funding for local government services.