The surcharge will apply to residential properties worth more than two million pounds ($A4.1 million) and is expected to raise 400 million pounds in 2029-30, according to estimates from the country's budget watchdog published on Wednesday ahead of the finance minister's budget statement.
The new tax will come into force in April 2028.
The fiscal watchdog, the Office for Budget Responsibility, said owners of homes valued at more than two million pounds by the Valuation Office, in 2026 prices, will be liable for a recurring annual charge which will be additional to existing local tax liability.
Under the changes, there will be four price local tax bands with the surcharge rising from 2500 pounds for a home valued in the lowest two million to 2.5 million band, rising to 7500 pounds for a property valued in the highest band of five million or more.
The values will be uprated in line with consumer price inflation every year, the document showed.
UK finance minister Rachel Reeves on Wednesday also said there would be changes to commercial property taxes, or business rates, to increase rates for high value properties.
"I will introduce permanently lower tax rates for over 750,000 retail, hospitality and leisure properties - the lowest tax rates since 1991 - paid for through higher rates on properties worth 500,000 pounds or more, like the warehouses used by online giants," Reeves said in her budget speech to parliament.
The UK's major supermarket groups, including industry leader Tesco and number-two player Sainsbury's, had urged the government not to charge higher rates on high value properties, arguing the move would add to high food inflation.
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