HMRC is set to dispatch valuation inspectors to properties across the UK to determine whether homeowners should pay additional tax under the new mansion tax charge. The revenue service will send out valuation officers with the authority to request access to properties to assess if they exceed £2m in value and therefore fall within the High Value Council Tax Surcharge, often called the mansion tax.
Mansion tax timeline and charges
The mansion tax charge, initially announced by former chancellor Rachel Reeves in last year's autumn budget, is scheduled to come into force in April 2028, following a consultation on the new charge which concluded in July. The levy will affect properties valued above £2m, with an additional charge of between £2,500 and £7,500 annually, depending on their worth.
Penalties for refusing access
Homeowners who decline to allow the inspectors access to their properties could face penalties of up to £200 and would be committing a criminal offence, according to The Telegraph, as reported by City AM. To establish which properties are liable for the charge, the taxman's valuation officers will utilise third-party data and publicly available information to estimate property values.
Inspection process and impact
According to the Valuation Office, part of HMRC which oversees council tax bands for homes in England and Wales, the inspections will be necessary where "attributes can only be confirmed internally or a re-measurement is required". Inspectors will carry out evaluations of properties' interiors, taking into account the size and architectural style of each home, as well as the number of bedrooms, bathrooms, and floors.
The mansion tax charge is anticipated to impact 165,000 homeowners in its first year alone, surpassing the initial forecast of 120,000. According to the fiscal watchdog, an additional 45,000 homes will be subject to the levy, though thousands are expected to lodge successful appeals against the tax.
