Council tax calculator map exhibits UK postcodes and areas hit by £7,500 hike | Politics | News | EUROtoday

A brand new council tax map exhibits the place within the UK will likely be hit by Rachel Reeves’ new hike. In as we speak’s Budget, the Chancellor introduced a rise in council tax for houses price greater than £2 million, additionally referred to as a ‘mansion tax’.

Properties priced between £2 million and £2.5 million will see an annual surcharge of £2,500, going as much as £7,500 for houses price over £5 million. This is along with their common council tax invoice. Property values won’t be based mostly on the final buy, however moderately on new valuations carried out by the Valuation Office to replicate their worth in 2026. Due to return into impact in April 2028, the brand new coverage is estimated to hit round 140,000 houses. London will likely be hit worst, with 82% of latest gross sales of properties over £2 million happening there. The Office for Budget Responsibility has stated that the coverage will increase £400 million for the Treasury by 2031. During her Budget speech, Reeves expressed the unfairness of the present system, saying {that a} band D residence in Darlington, Country Durham, pays £300 extra in council tax than a £10 million residence in Mayfair, London.

Industry specialists have expressed concern in regards to the valuation course of. Aneisha Beveridge, of property agent Hamptons, stated: “Valuing high-end homes accurately is notoriously difficult – around 30% of properties in England have not changed hands since Land Registry records began in 1995, making comparables scarce.

“This raises the risk of disputes and appeals, particularly where small differences in value could tip a property over the £2m threshold. Combined with the potential for a ‘cliff-edge’ effect, these valuation hurdles could create short-term uncertainty.”

There are additionally worries about how the brand new coverage will influence pensioners who reside in houses which have elevated in worth. The Telegraph discovered that areas with a excessive focus of houses valued at £2 million additionally are inclined to have a excessive proportion of residents over 65.

Lucian Cook, head of residential analysis at Savills, stated the change may even hit the house owners of second houses. He stated: “It is likely to have a disproportionate impact on second home markets which are already dealing with an increased stamp duty surcharge and the doubling of council tax.”

The Government has stated there will likely be a session on the brand new coverage, so particulars haven’t but been confirmed. Where different bands will sit hasn’t been revealed.

While the common council tax will go to native authorities, the surcharge will go to the central authorities. This tax will likely be charged on lower than the highest 1% of properties.