The UK is set to introduce a new council tax surcharge, dubbed the “mansion tax,” targeting high-value properties. Scheduled to come into effect in April 2028, this measure will impact homes valued over £2 million. The tax authorities are gearing up to inspect these properties to assess their value accurately, which may involve examining internal features and taking precise measurements.
Under this proposed surcharge, homeowners with properties valued between £2 million and £2.5 million will face an annual fee of £2,500. The charge increases to £3,500 for homes worth up to £3.5 million, £5,000 for properties in the £3.5 million to £5 million range, and £7,500 for those exceeding £5 million in value. This surcharge will be distinct from the existing council tax and is designed to rise annually in line with inflation.
Valuation officers will conduct inspections focusing on several factors, including the size of the property, its architectural features, the number of bedrooms and bathrooms, and the number of storeys. Property owners who obstruct these valuation officers may incur a £200 fine, and those who fail to provide necessary information without a valid reason could face penalties of up to £500.
The government has assured that these inspections will be carried out in accordance with official guidelines and will be scheduled by prior agreement with property owners. The initiative aims to ensure an equitable assessment of property values to facilitate the fair application of the new surcharge.