Britain's Luxury Homeowners Face New Tax Levy

Britain will introduce an annual tax on homes valued over 2 million pounds starting April 2028. The tax, expected to generate 0.4 billion pounds by 2029-30, will have four pricing bands, with rates beginning at 2,500 pounds for homes valued between 2 to 2.5 million, increasing to 7,500 pounds for properties above 5 million.

In a significant shift affecting luxury homeowners, Britain will implement an annual tax on properties valued over 2 million pounds, commencing in April 2028. This measure aims to generate 0.4 billion pounds by the 2029-2030 financial year.

According to new guidelines set by the Valuation Office, this tax will supplement existing local tax obligations. Homes are categorized into four pricing bands with escalating surcharges, starting from 2,500 pounds for properties valued between 2 and 2.5 million, to 7,500 pounds for those worth 5 million or more.

The annual tax rates will adjust in line with consumer price inflation, ensuring that the levy keeps pace with economic changes. This announcement, made ahead of the finance minister's budget statement, signals a notable change in fiscal policy for the British luxury housing market.

(With inputs from agencies.)