Yes. The government's response to the consultation, published at the Budget on 28 October 2026, puts the surcharge on the legal owner of the home. For a home held in trust that means the trustees. For a home owned by a company it means the company, which is unlikely to qualify for deferral.
Trusts
Trustees are liable for the surcharge on homes they hold. The consultation proposed that this follow the approach already taken for income tax and capital gains tax, covering bare trusts as well as discretionary and interest in possession trusts. The government noted concerns about trusts that hold homes for vulnerable adults or children but has not announced any special treatment for them.
In practice the beneficiary living in the home keeps paying council tax, while the trustees receive the surcharge bill. Trustees will need to decide how it is funded: from trust income, from capital, or by agreement with the beneficiary. For trusts holding homes near a line, the value is worth checking before the draft list, because the trustees carry the cost every year.
Companies
A company that owns a home in scope is liable in its own right. The deferral tests are applied to a household, so a company is unlikely to qualify. Homes held by companies may already face the Annual Tax on Enveloped Dwellings, so the surcharge would be a further yearly cost.
Funds and partnerships
The government has said it will set out rules for more complex structures, including funds and partnerships. The same principle applies, with the legal owner liable. Watch for the regulations if you advise on these structures.
Portfolios
Family trusts, family offices and companies often hold more than one home. The surcharge is charged per home, so a portfolio of five £2m to £2.5m homes would pay £12,500 a year in 2028/29, and about £413,300 over 20 years if inflation averaged 5%, as an illustration rather than a forecast. Consistent evidence across the portfolio, and a check of which homes sit near a line, is where a review is most likely to be worthwhile.
For advisers
If you act for trustees or a family office, you can refer a client for a review of each home. We keep you informed throughout.
Also asked
Who pays the mansion tax on a home held in a bare trust?
The trustees. The consultation proposed making trustees liable even in bare trust arrangements, in line with how income tax and capital gains tax treat them, and the government response confirms that trustees are liable for homes held in trust.
Can a company defer the mansion tax?
Very unlikely. The deferral tests confirmed at the Budget are applied to a household, against income, savings and disability criteria, so a company would not normally qualify. The detail is for regulations.
Does moving a home into a company or trust avoid the mansion tax?
No. The legal owner pays whoever that is, so a change of ownership structure moves the liability rather than removing it, and can bring other tax costs.
Last checked against the government's Budget documents and consultation response on 30 October 2026. The surcharge is being legislated in the Finance Bill 2026-27 and is not yet law. Some detail is still to come in regulations.