Reeves Hits UK Property With Mansion Tax on £2 Million Homes

The UK will impose a mansion tax on homes valued at more than £2 million ($2.6 million), the latest blow to the country’s already struggling high end housing market.

The measure, which will come into force in April 2028, will introduce a surcharge for the most expensive homes starting at £2,500 a year and rising to as much as £7,500, according to a report from the Office for Budget Responsibility that was published in error ahead of the Chancellor’s speech.

The levy is expected to raise about £400 million in the 2029 tax year as its introduction will cause distortions ...