The Autumn Budget announcement is always a big day in the UK’s financial calendar, and this year was no exception. In the hours leading up to the Chancellor’s speech, there was plenty of speculation-fuelled even more by a last-minute leak from the Office for Budget Responsibility (OBR) about the details of the budget. Social media buzzed, news outlets scrambled to interpret the hints, and many people wondered what surprises might be in store. 

As the Chancellor took to the dispatch box just after lunchtime, the country tuned in to hear what would change for the years ahead. 

There was a lot announced in the budget, which we covered in a deep dive here, but here is a snippet of one of the key topics.

 

High Value council tax surcharge

What is it?

A new annual tax on owners of residential properties in valued at £2 million or more (based on 2026 prices). This is in addition to your regular council tax.

There are four bands, with charges rising as property value increases:

• £2m–£2.5m: £2,500 per year
• £2.5m–£3.5m: £3,500 per year
• £3.5m–£5m: £5,000 per year
• £5m+: £7,500 per year

When does it start? And who pays?

The surcharge will apply from April 2028, following a targeted valuation exercise by the Valuation Office in 2026. Revaluations will be carried out every five years. The property owner (not the occupier or tenant) will be liable for the surcharge.

A public consultation will be held in early 2026 to decide details, including reliefs, exemptions, appeals, and support for those who may struggle to pay.

The Government will also consult on how to deal with complex ownership structures (companies, trusts, partnerships) and properties where occupation is required for a job.

Local authorities will collect the surcharge on behalf of central Government and will be compensated for the extra administration costs.

What if I don’t have enough money to pay?

The Government has committed to consulting on support and deferral schemes for those unable to pay immediately, including possible exemptions and reliefs for hardship cases. Details of these schemes will be decided after the consultation in 2026.

 

What Should You Do Now?

For most people, this Budget doesn’t require urgent action or a change of course. If you’ve been waiting for clarity before making financial decisions, you can continue with your plans. However, it’s important to recognise that, while there are few immediate changes, the impact of frozen allowances and future tax rises will build up over time.

For most, the best approach is to stay on track, keep your plans under review, and be aware of how gradual changes may affect you in the years ahead.

 

Need Advice?

With so many moving parts and individual circumstances, we believe in the value of independent, ongoing financial planning. If you don’t already have regular reviews, or if you’re unsure how these changes might affect you, please get in touch for a personal review. For clients who already benefit from our ongoing service, we’ll be happy to discuss the details and implications at your next annual review.

Remember: The best financial decisions are made with up-to-date, factual information and tailored advice. If you have questions or want to discuss your financial plan, we’re here to help.

 

Disclaimer

This summary is provided for general information purposes only and does not constitute personal financial advice, a recommendation, or guidance to make any financial decisions. The content is based on information available at the time of writing, including official Government announcements and reputable sources. Some measures discussed may be subject to further consultation, may not be implemented immediately, or could change as legislation develops.

Tax rules, allowances, and rates are subject to change and may vary depending on your individual circumstances and where you live in the UK. The impact of any changes will differ from person to person. You should not make financial decisions based solely on this summary. We strongly recommend seeking personalised, independent advice before taking any action in response to Budget announcements.

Past performance is not a reliable indicator of future results. The value of investments and the income from them can go down as well as up, and you may not get back the amount you invest.