Chancellor Rachel Reeves is preparing to introduce a new mansion tax targeting thousands of Britain's most valuable properties as part of her highly anticipated Budget 2025 this Wednesday.
The New Levy on High-Value Homes
The new levy, which has been the subject of intense speculation, will reportedly see a revaluation of the most expensive properties across council tax bands F, G, and H. This move is expected to affect approximately 100,000 properties with a new surcharge.
While initial suggestions pointed towards a 1 per cent levy on properties valued at £2 million or more, expectations have now shifted. Due to concerns about the potential impact on the London housing market, the final surcharge is anticipated to be set much lower, potentially capped at a maximum of £5,000.
Balancing the Books with Wealth Taxes
The mansion tax forms a central part of a series of wealth taxes that Chancellor Reeves is set to unveil. The primary objective is to fill a significant spending black hole identified in the government's finances.
Other measures expected to be announced alongside the property levy include a new tax on the profits of gambling companies, a policy that was reportedly demanded by former Prime Minister Gordon Brown. Additionally, a separate levy on bank profits is also on the table.
These announcements will be made on Wednesday, 24 November 2025, as the Chancellor lays out her fiscal plan for the coming year.
