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Mansion tax will knock £50,000 off value of £2m home, says Treasury

The UK Treasury's council tax surcharge on homes over £2 million aims to correct tax imbalances and is linked to a predicted 2.5% average price drop, impacting fewer than 1% of properties.

  • Labour's mansion tax will reduce property values by £50,000 for homes worth £2 million, according to the Government's assessment.
  • The new levy, announced by Chancellor Rachel Reeves, targets homes valued at over £2 million with a council tax surcharge.
  • Households in London will be most impacted due to the city's high number of multimillion-pound properties.
  • The new tax will have four bands based on property value, with charges ranging from £2,500 to £7,500 per year.
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mpamag.com broke the news in on Thursday, December 11, 2025.
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