The castles outside London that will escape ‘mansion tax’ - while one-bed central London flats hit

Meanwhile, castles including one with its own helipad, will escape the levy.

In London, there were 6,574 properties sold for over £2 million in the last two years, according to the Institute for fiscal studies (IFS).

Nearly one in four of the properties to which the “mansion tax” will apply are in just three London boroughs, Kensington and Chelsea, Westminster and Camden.

The London Standard has identified  some one-bedroom flats that will be impacted in sought after streets such as Wetherby Gardens in South Kensington.

A one-bedroom flat at Battersea Power Station is currently on sale for £3,000,000.

£2,000,000 also gets you an 81 square metre one-bedroom, one bathroom property in Knightsbridge in London.

Those not wanting to pay the annual additional tax of up to £7,500 a year could instead move to  18th-Century Tawstock Castle in North Devon, which has its own helipad.

The castle enjoys 8.41 acres of private, fenced grounds, approached via a long private gated driveway.

It has battlements, and a ‘King Arthur’ style round table - and is currently listed for £1.35m despite being in council tax band H it would not be impacted by the tax which apples to properties of £2m and over.

Augill Castle in Cumbria is currently for sale with an asking price of £1.75 million. The castle, which currently operates as a 14-room hotel and wedding venue, is described as a “magnificent 19th-century Victorian Gothic Folly set in around 10 acres of grounds with ancillary accommodation in a unique rural setting with far-reaching views.”

For £1.3m you could pick up Fa'side Castle, East Lothian, which according to Savills enjoys “Stunning views over the Firth of Forth” and is “easily commutable to Edinburgh city centre.”

Described as an “Incredible 14th century castle” it also has two cottages, B&B holiday accommodation, spiral staircases and a glass walkway over what used to be the castle’s dungeon. It has six bedrooms, three bathrooms and five living rooms

According to the IFS, 69% of properties affected by the mansion tax will be in London and the South East.

How will the mansion tax work?

There will be four “mansion tax” price bands with the surcharge starting at £2,500 a year for properties worth over £2 million to £2.5 million, £3,500 for those valued at £2.5 million to £3.5 million, £5,000 for homes worth £3.5 million to £5 million, and £7,500 for properties worth more than £5 million.

The Valuation Office is to conduct a “targeted valuation exercise” to identify properties that will have to pay the tax. They will have to be worth above £2 million and the valuation exercise is expected to look at homes in the higher Council Tax bands F, G, and H.