No. Under the government's proposals, owners of homes in scope keep paying their council tax as now, and pay the surcharge on top. The two charges are based on different values, can fall on different people, and are challenged in different ways.
Side by side
| Council tax | Mansion tax (HVCTS) | |
|---|---|---|
| Who pays | Usually the person living in the home | The owner |
| Based on | 1991 values in England | 2026 values |
| Applies to | Almost every home | Homes worth £2m or more |
| Amount | Set each year by the council for each band | Fixed national charge per band, rising with CPI |
| Collected by | The council | The council |
| Valued by | The Valuation Office | The Valuation Office, in a separate exercise |
| Appeals to | The Valuation Tribunal for England | The Valuation Tribunal for England |
Where the difference bites
Let homes
The tenant usually pays council tax, although in some cases, such as some shared houses, the owner does. The landlord would pay the surcharge. Landlords of £2m homes face a new cost that the tenancy does not pass on automatically. See second homes and let property.
Homes held in trust
The beneficiary living in the home pays council tax, but the trustees are liable for the surcharge. See do trusts and companies pay?
Your council tax band tells you nothing
Homes worth £2m today mostly sit in council tax bands F, G and H, and band H alone covers every home worth more than £320,000 in 1991. The surcharge draws its own lines using 2026 values, so your council tax band is no guide to your surcharge band.
Also asked
Will my council tax band change because of the mansion tax?
No. The surcharge uses its own 2026 valuation. Council tax bands in England are still based on 1991 values and are not changed by the surcharge.
Who gets the money from the mansion tax?
Councils collect it, but the money raised is due to go to the Treasury rather than to the local council.
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.