As previously announced, the High Value Council Tax Surcharge will take effect from April 2028. Following consultation, the Autumn Budget provides more detail on who will pay, options to defer payment, exemptions and double charges for empty properties.
Autumn Budget 2026: High Value Council Tax Surcharge and Business Rates – what they mean for you
For smaller retail, hospitality and leisure businesses, the Budget includes further business rates support.
From April 2027, the rateable value threshold for full Small Business Rate Relief will rise from £12,000 to £18,000 for qualifying properties.
High Value Council Tax Surcharge
The Government has confirmed that the High Value Council Tax Surcharge will apply to residential properties in England from April 2028.
The legal owner of the property will be responsible for paying the surcharge. The annual charges will be:
£2 million to £2.5 million: £2,500
£2.5 million to £3.5 million: £3,500
£3.5 million to £5 million: £5,000
More than £5 million: £7,500
A deferral may be available where:
household income is £35,000 or less;
capital savings are £16,000 or less; or
the property is the main home of someone who is disabled or severely mentally impaired.
A 100% premium will apply to properties that remain substantially unfurnished and unoccupied for at least 12 months, with the aim of encouraging owners to bring them back into use.
The Valuation Office Agency will value affected properties, with valuations reviewed every five years. If your home is close to or above the £2 million threshold, it is worth considering the potential cost as part of your longer-term plans.
Further regulations will set out how the surcharge and deferral arrangements will operate, including any interest charged. The Government will continue working with local authorities on the design and delivery of the scheme.
Business Rates
From April 2027, the government will provide further business rates support for smaller retail, hospitality and leisure properties in England.
Qualifying properties with a rateable value of up to £18,000 will receive full Small Business Rate Relief, meaning no business rates will be payable. This threshold is currently £12,000. Relief will then taper for properties with rateable values between £18,000 and £21,000.
Increases in bills for qualifying properties will also be capped in line with Consumer Prices Index (CPI) inflation during 2027/28 and 2028/29. This gives businesses more certainty over future costs, although bills may still rise: it is not a cash freeze.
Relief for eligible pubs, social clubs and most live music venues will increase from 15% to 35%. Live music venues with a rateable value of £1 million or more will remain eligible for 15% relief but will not receive the increase.
These changes offer welcome support for many high-street businesses. However, larger and higher-value properties may still face cost pressures, including businesses outside the multinational warehousing sector the Government is targeting.
Real people. Real support.
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