HMRC to deploy agents for mansion tax property inspections

HMRC will deploy valuation agents to properties across the United Kingdom to determine whether homeowners are liable for the new high value council tax surcharge. These inspectors will have the authority to demand entry to assess if a residence is worth more than two million pounds, a threshold that triggers the additional levy. The move follows the conclusion of a consultation period in July and precedes the charge taking effect in April 2028.

The surcharge, first proposed in the autumn budget by former chancellor Rachel Reeves, will impose an annual cost between 2,500 and 7,500 pounds on qualifying properties. The exact amount depends on the specific value of the home. To identify which residences fall under this rule, the tax authority will utilise third-party data and publicly available information to estimate values. However, physical inspections will be conducted where internal attributes require confirmation or re-measurement, according to the Valuation Office.

During these visits, agents will evaluate interior features such as the size, architectural style, and the number of bedrooms, bathrooms, and storeys. Homeowners who refuse entry to these inspectors may face fines of up to 200 pounds and commit a criminal offence. The levy is projected to impact 165,000 homeowners in its first year, exceeding the initial forecast of 120,000. Fiscal watchdogs estimate that an additional 45,000 homes will be subject to the charge, although thousands are expected to successfully appeal the tax.