Most ‘mansion tax’ decisions will be made without home visits, HMRC confirms
HMRC will primarily rely on existing information about a home to apply its incoming High Value Council Tax Surcharge (HVCTS), it has said.
This follows reports over the weekend suggesting valuation agents would be visiting people’s homes for inspections, with people who refuse inspections at risk of being fined.
It was reported that the fine could be up to £200.
A spokesperson for HMRC said: “Our professional valuers use a range of freely available information sources to ensure valuations are based on the most up-to-date information.
“In the vast majority [of] cases, we will be able to make banding decisions using existing information without the need to visit a property.”
The HVCTS, dubbed the ‘mansion tax’, will be effective from April 2028 and applied against homes worth at least £2m.
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It was introduced by then-Chancellor Rachel Reeves on the basis that this would make the council tax system fairer and resolve instances where homeowners of lower-value properties pay more council tax than owners of higher-value properties.
The surcharge will start at £2,500 for properties worth between £2m and £2.5m, up from £7,500 for homes worth £5m or more.
The valuations will be based on the Valuation Office’s evaluation of 2026 prices and will be increased in line with Consumer Prices Index (CPI) inflation each year from 2029-30. The Valuation Office was integrated into HMRC in April.
Valuation officers already carry out home inspections and homeowners are typically notified ahead of a visit. If tenants of HVCTS properties believe there are any inaccuracies related to HMRC’s decision, they can contact the organisation to have it amended.
The government’s approach to the HVCTS has not been finalised and it is currently consulting to shape the policy.
It has been predicted that around 1-2% of homes in England will be liable to the tax surcharge and these will mostly be concentrated in London and the South East of England.
