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flag UK to launch mansion tax in 2028, targeting homes over £2M, raising £400M+ by 2031.

flag The UK government has introduced a mansion tax set to take effect in April 2028, imposing an annual surcharge on homes valued at £2 million or more. flag The tax, part of Chancellor Rachel Reeves’ 2025 budget, will charge £2,500 for properties worth £2–£2.5 million and up to £7,500 for those over £5 million, with annual increases tied to inflation. flag Expected to raise over £400 million by 2031, it targets less than 1% of homes, primarily in London and high-cost areas. flag The policy aims to address long-standing inequities in the outdated council tax system, which has not been revalued since 1992. flag Critics warn it may distort the market, discourage investment, and disproportionately affect asset-rich, cash-poor homeowners, while some question its long-term effectiveness and potential for repeal.

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