Ministers have confirmed that HMRC valuation agents will carry out "internal inspections" of homes across England to determine whether owners must pay a new annual surcharge on properties worth more than £2 million. The confirmation came through answers to Conservative parliamentary questions.
Inspectors granted entry powers
Under the plans, inspectors will have the power to demand entry to properties to check whether they are worth more than £2 million and therefore liable for the levy. Homeowners who refuse entry will commit a criminal offence and face a fine of up to £200, while those who fail to provide requested information without a reasonable excuse risk a fine of up to £500.
The surcharge, originally unveiled by former chancellor Rachel Reeves in last year's Budget, will impose an annual charge of between £2,500 and £7,500 on homes valued above £2 million, on top of the existing council tax. London and the South East are expected to be hit hardest, though expensive rural properties will also be caught.
Details recorded during visits
Officials will record details including a property's size, architectural style, number of floors, rooms, bedrooms and bathrooms. The Valuation Office Agency, part of HMRC, will initially rely on third-party data, publicly available information and satellite imagery, but has made clear that physical visits will be needed where attributes can only be confirmed inside or a re-measurement is required.
A housing minister confirmed the £200 fine for anyone who "intentionally delays or obstructs" a valuation officer. Junior Treasury minister Dan Tomlinson said the Valuation Office would contact homeowners to "arrange a visit". Guidance states that failing to provide required information is a criminal matter that could result in a fine or, potentially, imprisonment for making a false statement.
Political criticism and government defence
Shadow chancellor Mel Stride condemned the plans as a "sinister assault on civil liberties". He told The Telegraph: "We may have changed prime minister, but it's the same old story with Labour – how can we raise taxes to pay for more benefits? Now they have chosen a sinister assault on civil liberties as their latest method."
Shadow housing secretary Sir James Cleverly accused the government of "snooping", saying: "Hard-working families and pensioners face the prospect of HMRC tax inspectors snooping around their gardens and inside their homes, to justify hiking taxes on them. Even homes which are below the new tax thresholds face these intrusive checks, with the threat of criminal prosecutions and fines if people refuse."
Defending the policy, a government spokesman said: "The public understands that we are addressing a longstanding unfairness, where a Band D home in Darlington pays more in council tax than a £10m mansion in Mayfair. The Valuation Office has extensive experience valuing domestic property, and will use a wide range of evidence to determine bandings." The spokesman added that visits would take place by prior agreement and in line with the government's code of practice.
Levy due in 2028
The levy is due to take effect in 2028. Property experts have told ministers that regular full physical surveys by qualified surveyors will be necessary to keep valuations up to date. Critics argue the measures represent an unprecedented intrusion into the private lives of homeowners in the name of raising revenue.
