New Council Tax Surcharge On High Value Homes. What It Means For Your Legal Planning

Posted 03 Dec, 2025

The government has announced a new annual council tax surcharge for high value residential properties. Homes valued above two million pounds will face a charge of two thousand five hundred pounds each year. Homes valued above five million pounds will face a charge of seven thousand five hundred pounds. This is a financial policy, but it can have meaningful consequences for how clients approach their wills, property arrangements, probate planning and long term legal protection.

We do not give financial advice on property tax. What we do see, however, is that when major property related rules change, clients often reassess how their homes fit into their wider plans.

How This Surcharge Can Influence Wills and Estate Planning

For many families, the home is the most valuable part of their estate. A change in its cost or how it is categorised often prompts clients to ensure their will is up to date. You may need to revisit your will if:

• property values have risen significantly
• you are considering gifting or transferring a share of the property
• you want to change who inherits the home

A clear will protects your wishes and gives certainty to your executors and loved ones.

How It May Affect Probate

High value homes can add complexity to the probate process, especially where valuation, outstanding charges or shared ownership need to be addressed. Probate runs far more smoothly when

• property documents are current
• ownership is clear and accurately recorded
• your will reflects how you want the home handled

Even though accountants deal with any tax calculations, executors rely on legally sound documents to complete the estate administration.

How Property Decisions May Shift

Whenever the cost of holding a property changes, some clients review their ownership arrangements. This might include

• transferring a share of the home to a spouse or family member
• selling a second property
• reorganising joint ownership

We do not advise on whether such decisions are financially beneficial. We do, however, manage the legal work involved through our conveyancing and property services to ensure any changes are properly documented and protect your position.

Why LPAs Remain Essential

Property is often the main asset that attorneys manage if a client loses capacity. A Lasting Power of Attorney allows you to choose trusted people to make decisions about your home and finances if needed. Many clients choose to put LPAs in place when reviewing property arrangements so that everything is aligned.

What Clients Should Consider Now

Even though this is a financial measure, it makes sense to check that your legal planning is still suitable. It is a good time to review:

• whether your will reflects your current intentions
• whether your property documents are accurate
• whether your executors and attorneys are the right people
• whether your records are organised and easy to follow

Taking these steps now ensures your arrangements protect both you and your family.

If you would like support with wills, probate, conveyancing or LPAs, our Private Client team is here to help you plan with clarity and confidence.