HMRC mansion tax inspectors to target homes for property valuations

HMRC will send mansion tax inspectors to homes across the UK to determine whether homeowners should pay more tax under the new levy.

The taxman will deploy valuation agents who will be able to demand entry to properties in order to assess whether they are worth over £2m and therefore fall under The High Value Council Tax Surcharge – commonly referred to as the mansion tax.

The mansion tax levy, first introduced by former chancellor Rachel Reeves in last year’s autumn budget, is due to take effect in April 2028, after a consultation on the new levy ended in July.

The charge will apply to properties worth over £2m with an extra levy of between £2500 and £7500 each year, contingent on what they are worth.

Property owners who refuse to let the inspectors enter their homes may face fines of up to £200 and would be committing a criminal offence, according to The Telegraph.

In order to determine which homes are subject to the charge, the taxman’s valuation agents will use third-party data and information which is already publicly available to estimate the value of properties.

Scope of mansion tax inspections

According to the Valuation Office, part of HMRC which is responsible for keeping tabs on council tax bands for homes in England and Values, the inspections will be required where “attributes can only be confirmed internally or a re-measurement is required”.

The inspectors will conduct assessments of property interiors, including on the size and architectural style of homes, whilst also looking at the number of bedrooms, bathrooms, and storeys.

Mansion tax to hit 165,000 homes

The mansion tax charge is expected to affect 165,000 homeowners during its first year, more than the 120,000 originally forecast.

A surplus 45,000 homes will be hit with the levy, according to the fiscal watchdog, with thousands able to successfully appeal the tax.