mansion tax empty homes premium from April 2028 doubles the new High Value Council Tax Surcharge on properties left substantially unfurnished and unoccupied for 12 months or more. Owners of homes valued at £2 million-plus in England face the extra levy on top of ordinary council tax. The base surcharge runs £2,500 to £7,500 a year depending on band. The empty-homes premium takes the top rate to £15,000.
Here’s the quick snapshot:
- It starts 1 April 2028 and applies only in England.
- Base rates: £2,500 (£2–2.5m), £3,500 (£2.5–3.5m), £5,000 (£3.5–5m), £7,500 (£5m+).
- Empty premium: 100% extra when the property meets the 12-month unfurnished/unoccupied test.
- Owner (not tenant) pays. Valuations use 2026 market values.
- Deferrals exist for low-income or disability cases; some farm and developer discounts apply.
Think of it as a targeted wealth charge that also tries to push idle high-end stock back into use. Whether that works is another story. The numbers are real and the timeline is fixed.
What the mansion tax empty homes premium from April 2028 actually covers
mansion tax empty homes premium from April 2028 The formal name is the High Value Council Tax Surcharge. Press shorthand calls it the mansion tax. It sits on top of existing council tax and is collected by local authorities. Liability follows legal ownership. Long leaseholders (generally leases over 21 years) can be on the hook. Companies and trustees pay if they hold title. Joint owners share joint and several liability.
Valuation is separate from the old 1991 council-tax bands. The Valuation Office Agency will assess 2026 market values. A draft list of affected properties is expected in autumn 2027, giving owners time to check and challenge banding before the first bills land in March 2028 for the April start.
Existing empty-homes council-tax premiums remain a parallel system. Do not simply double your current bill and call it done. The new surcharge uses its own definitions of “substantially unfurnished and unoccupied.”
Rates and the empty-homes premium at a glance
| Property value (2026) | Base annual surcharge | With 100% empty premium |
|---|---|---|
| £2m – £2.5m | £2,500 | £5,000 |
| £2.5m – £3.5m | £3,500 | £7,000 |
| £3.5m – £5m | £5,000 | £10,000 |
| £5m+ | £7,500 | £15,000 |
These figures rise with CPI from 2029/30. The empty premium applies when the property has been substantially unfurnished and unoccupied for at least 12 continuous months. A short occupation or furnishing period can reset the clock under existing empty-home rules; exact interaction with the new surcharge will be set out in secondary legislation.
Office for Budget Responsibility estimates put roughly 165,000 properties in scope before behavioural change, raising around £400 million in 2028/29. Most sit in London and the South East. Fewer than 1% of English homes are expected to be affected.
Who can defer or claim relief under the mansion tax empty homes premium from April 2028
Cash-poor owners of a main residence can defer if household income is £35,000 or less, capital savings are £16,000 or less, or a household member meets disability criteria. These are alternative tests, not cumulative. Deferred amounts (plus interest still to be set) become due when the property is sold or ownership otherwise changes.
Confirmed or proposed discounts include:
- Farmhouses and associated farmworkers’ accommodation on working farms (scope still being refined with the sector).
- Qualifying unsold new-build homes held by developers (discount until first sale or 12 months after the completion notice, whichever comes first).
- Registered social housing, certain military and diplomatic properties, student halls, long-term care accommodation, and qualifying charitable use.
Exemptions and discounts are not automatic. Evidence of use, ownership, and status will matter. In my experience, the owners who fare best are those who start gathering documentation early—title deeds, occupancy records, farm accounts, or development completion notices—rather than waiting for the first demand.
Step-by-step action plan for owners and advisers
- Check plausible 2026 value. If your property is anywhere near £2 million, treat it as potentially in scope. Recent comparable sales, professional valuations, and local market data help.
- Confirm legal ownership. Who holds the freehold or long lease? That person or entity will be billed.
- Track occupancy and furnishing status now. Keep records of any periods the property is occupied or substantially furnished. A 12-month empty run after April 2028 triggers the premium.
- Review eligibility for deferral or discount. Low-income, disability, farm, or developer status can change the cash-flow picture.
- Watch the autumn 2027 draft list. Challenge banding or liability through the Valuation Tribunal route within the stated windows (expected eight months at launch, six months for new cases).
- Model the full cost. Base surcharge + any empty premium + ordinary council tax + potential interest on deferral. Run the numbers for both occupied and empty scenarios.
- Decide use or exit strategy. Leaving a £5m+ home empty becomes expensive fast. Letting, selling, or occupying may be the rational response.
mansion tax empty homes premium from April 2028 What I would do if I owned a borderline property: commission an independent valuation reference to April 2026 conditions, document every occupation period, and speak to a specialist property tax adviser before the draft list appears. Waiting until the bill arrives is the expensive option.
Common mistakes and how to fix them
mansion tax empty homes premium from April 2028 Assuming the existing council-tax payer is automatically liable for the surcharge. Fix: check legal title. Tenants rarely pay the new charge.
Treating a furnished second home the same as a long-term empty property. Fix: the premium targets substantially unfurnished and unoccupied stock. Second-home premiums under ordinary council tax are a separate regime.
Ignoring the valuation challenge window. Fix: diary the expected autumn 2027 draft list and the subsequent appeal deadlines. High-value homes often have unique features—grounds, listed status, restrictive covenants—that desk valuations can miss.
Forgetting that deferral is not cancellation. Fix: calculate the eventual repayment (plus interest) against expected sale proceeds or inheritance planning.
Relying on informal “mansion tax” chatter instead of the official consultation response and forthcoming secondary legislation. Fix: track GOV.UK publications and the House of Commons Library briefings for definitive wording.
Key Takeaways
- The mansion tax empty homes premium from April 2028 doubles the High Value Council Tax Surcharge for properties empty and substantially unfurnished for 12+ months.
- Base charges range from £2,500 to £7,500; the premium takes the top band to £15,000 a year on top of ordinary council tax.
- Only England is covered; valuations use 2026 market values with a draft list expected in autumn 2027.
- Owners (including long leaseholders) pay; tenants generally do not.
- Deferral and limited discounts exist for low-income, disability, farm, and developer cases.
- Record-keeping on occupancy and ownership now prevents expensive surprises later.
- Behavioural responses—selling, letting, or occupying—will shape the final number of properties that actually pay the full rate.
The policy is designed to raise revenue from the highest-value homes while discouraging long-term empty stock. Whether the empty premium actually brings many properties back into use remains open. Savills has already noted limited expected impact on occupancy rates. For owners, the practical reality is simpler: the cost of leaving a high-value English home empty is about to rise sharply.
mansion tax empty homes premium from April 2028 If your property sits near or above the £2 million mark, treat the next 18 months as preparation time. Confirm ownership, document use, and model the cash impact. The first bills land in March 2028.
FAQs
Does the mansion tax empty homes premium from April 2028 apply outside England?
No. It is limited to residential property in England. Wales, Scotland and Northern Ireland are outside the scheme.
Can I avoid the empty premium by keeping furniture in the property?
The test is “substantially unfurnished and unoccupied.” Token furniture is unlikely to suffice. Continuous occupation or substantial furnishing for at least six weeks can reset the empty clock under related rules; exact interaction with the surcharge will be clarified in regulations.
What happens if I inherit a high-value empty home after April 2028?
Liability follows legal ownership. Deferral may be available if income or disability criteria are met. Interest will accrue until payment on sale or other disposal. Early advice on probate and title transfer is essential.
