Both are in scope. The surcharge is paid by the owner, not by whoever lives in the home, so a landlord pays it on a let home and a second home owner pays it on a home they visit only occasionally, provided the home is in England and was worth £2m or more in 2026.
Let homes
Ordinary council tax stays with whoever is liable for it now, usually the tenant but in some cases, such as some shared houses, the owner. The landlord receives the surcharge bill. For a £2m to £2.5m home that is £2,500 a year in 2028/29, rising with inflation, and it is a cost the tenancy does not pass on by itself.
For flats, liability depends on the lease. Where the lease was first granted for more than 21 years, the leaseholder pays, not the freeholder. So a buy-to-let investor who holds a long lease on a £2m flat is the one billed.
Second homes
Second homes pay the same band charge as main homes. A second home in the Cotswolds, on the south coast or in London pays what a main home in the same band pays. Council tax second home premiums, where a council charges them, are separate and carry on as well.
Empty homes pay double
The Budget on 28 October 2026 added a 100% premium for homes left substantially unfurnished and unoccupied for 12 months or more. That doubles the surcharge, so a home in the lowest band would pay £5,000 a year and one in the top band £15,000. On the published wording a furnished second home used from time to time should not be caught, and a let home with a tenant is occupied. A home standing empty between lets, during a long renovation or while it waits to be sold is where owners need to watch the 12 months. The start date and any exceptions are still to be set out. More on the empty homes premium.
Deferral does not help here
Deferral is tested on the household living in the home, against income, savings and disability criteria. Landlords and second home owners are unlikely to qualify.
Portfolios
Landlords with several £2m homes pay the surcharge on each one. Over 20 years at 5% inflation, each home in the lowest band adds up to about £82,700, as an illustration rather than a forecast. Checking which homes sit near a line is the obvious first step.
Also asked
Does the mansion tax apply to second homes?
Yes, if the second home is in England and was worth £2m or more in 2026. Second homes pay the same band charge as main homes. A home left substantially unfurnished and unoccupied for 12 months or more pays double.
Can a landlord pass the mansion tax on to the tenant?
The surcharge is the landlord's liability. Whether any of the cost can be reflected in rent depends on the tenancy and the market, not on the surcharge rules.
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.