Key facts
- HMRC will deploy valuation agents to conduct property assessments for a new tax.
- The tax, referred to as the High Value Council Tax Surcharge or 'mansion tax', targets properties valued over £2 million.
- The levy is scheduled to be implemented in April 2028.
- Annual charges will range from £2,500 to £7,500, depending on property value.
- Homeowners who refuse inspectors entry face fines up to £200 and a criminal offense.
HM Revenue & Customs (HMRC) is preparing to send 'valuation agents' to homes across the UK to determine property values for a new tax levy. The High Value Council Tax Surcharge, commonly known as the 'mansion tax', is slated to take effect in April 2028.
The tax, introduced by former chancellor Rachel Reeves in last year's autumn budget, will apply to properties valued at over £2 million. Homeowners of such properties will face an additional annual charge ranging from £2,500 to £7,500, depending on the property's worth.
Valuation agents will conduct internal property assessments, examining factors such as size, architectural style, and the number of bedrooms, bathrooms, and storeys. These inspections are deemed necessary where property attributes can only be confirmed internally or require re-measurement, according to the Valuation Office, which is part of HMRC.
The tax is anticipated to impact approximately 165,000 homeowners in its inaugural year, exceeding the initial forecast of 120,000. The fiscal watchdog estimates that an additional 45,000 homes will be subject to the levy, with provisions for homeowners to appeal the tax.
Refusal to allow inspectors access to properties could result in fines of up to £200 and is considered a criminal offense, as reported by The Telegraph.