Government explores additional levy on overseas owners of high-value properties on top of planned mansion tax surcharge
The Treasury is considering an additional levy on non-UK resident owners of high-value properties, on top of a proposed mansion tax set to take effect in April 2028.
A consultation document published earlier this week sets out the possibility of a higher rate for overseas buyers of properties worth more than £2 million — a measure being referred to internally as an "oligarch premium".
The Financial Times said government officials confirmed the idea of a "non-resident premium" is under consideration, though one stated: "We have not said we are going to do it."
Reeves considers levying ‘oligarch premium’ on overseas buyers of expensive UK homes https://t.co/v1Ag3WhLMr
— FT UK Politics (@ftukpolitics) May 19, 2026
Chancellor Rachel Reeves announced the council tax surcharge — covering the top 1% of properties by value — in last year's Budget. Under the standard structure, homes valued between £2 million and £2.5 million would incur an annual surcharge of £2,500, rising incrementally to £3,500 for properties up to £3.5 million, £5,000 for those up to £5 million, and £7,500 above that threshold.
The measure is forecast to raise approximately £430 million per year from 2028. The consultation raises the prospect of generating additional revenue from non-resident owners.
"In high-pressure housing markets, particularly in areas such as London, there is interest in understanding whether demand from non-UK resident owners may be contributing to pressures on housing availability and prices," the consultation says.
"Depending on the evidence base, the government is interested in exploring whether there could be a case for applying an additional premium to non-UK resident owners of homes liable for the tax."
Dan Tomlinson, Treasury minister, confirmed the next revaluation of the mansion tax would occur in 2033 to keep the tax current. "A £10 million mansion in Mayfair should not be paying less council tax than an ordinary family home in Darlington or Blackpool," he said.
The proposal is expected to find support among Labour MPs pressing for greater taxation of high-net-worth individuals and overseas investors.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
