Council Tax Bills Slashed to Zero in February as New High-Value Surcharge Looms
In a significant financial reprieve for millions, council tax bills across England will be reduced to £0 for the month of February 2026. This marks the beginning of a scheduled two-month break from the charge for the majority of households, offering temporary relief from the long-standing local levy.
A Temporary Respite from Monthly Payments
While council tax is typically billed monthly, many residents actually pay their annual sum across ten instalments. This common payment structure means that for these households, no bill will be issued for either February or March. The system, which has been in place since council tax replaced the controversial Poll Tax in 1993, allows for this annual budgeting quirk.
If you are uncertain whether your payments are spread over ten or twelve months, it is crucial to review your direct debit mandate and your most recent council tax bill for clarification. The current Labour Party government has also implemented provisions to assist those facing financial difficulties, permitting them to opt for spreading their annual council tax liability across twelve months instead of the standard ten, thereby reducing each individual payment.
Major Reforms on the Horizon: New Bands for High-Value Homes
This temporary break precedes a fundamental overhaul of the council tax system set to be introduced by the Labour government. From April 2028, a new High Value Council Tax Surcharge (HVCTS) will be levied on owners of residential properties in England valued at £2 million or more.
The government has confirmed that this surcharge will introduce four entirely new council tax bands, separate from the existing structure. Properties falling under this new scheme will face additional annual charges starting from £2,500 for homes worth over £2 million, escalating to a substantial £7,500 for properties valued above £5 million.
A Separate and Targeted Valuation Exercise
The Valuation Office Agency (VOA) has provided detailed clarification on the impending changes. "The government has announced that, from April 2028, it plans to introduce a new High Value Council Tax Surcharge on owners of residential property in England worth £2 million or more," the agency stated.
It emphasised that the new surcharge will operate independently of the current council tax bands, which are famously based on property values from 1991. "The surcharge will not be determined by current Council Tax bands. For example, bands F, G and H will not be used to determine eligibility for the surcharge," the VOA explained.
To determine which properties are liable, the VOA will conduct a separate, targeted valuation exercise assessing property values as of 2026. "If a property is identified as being worth £2 million or more, it will then be placed into one of four HVCTS bands," the agency continued. "This exercise is separate from, and without reference to, existing council tax bands. Council tax bands will not be used to determine eligibility for the surcharge and will have no bearing on a property’s HVCTS band."
Critically, the VOA confirmed that the existing council tax system will remain unchanged for the vast majority of homeowners. "As this charge is separate from council tax, current council tax bands will not be affected and will still apply. Equally, a change in Council Tax band will not affect eligibility for the surcharge." This ensures that the new high-value surcharge is a targeted measure aimed at the most expensive properties, while the standard system continues for others.
