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

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.

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.

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 around £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, it says.

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.