UK homeowners will have six months to challenge levy on homes worth £2m or more
In the United Kingdom, owners of properties that will be subject to the new annual levy on homes worth £2 million or more will have around six months to challenge the valuation before the system is launched in spring 2028. This was reported by The National.
The methodology for determining property values is due to be announced by the end of the year. Next autumn, owners will be told whether their homes have been deemed to exceed the £2 million threshold. After that, HM Revenue & Customs has provided time for valuations to be checked, objections to be submitted and appeals to be filed.
Levy rates
The levy, officially called the high-value council tax surcharge, was introduced in last year's budget during the tenure of former Chancellor of the Exchequer Rachel Reeves. It will be charged separately from council tax and will rise annually in line with inflation.
- £2,500 per year for homes worth from £2 million to £2.5 million;
- £3,500 for properties worth up to £3.5 million;
- £5,000 per year for properties worth from £3.5 million to £5 million;
- £7,500 for homes worth more than £5 million.
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The levy is expected to affect about 200,000 homes, or 1% of all properties, mainly in London and the southeast of the country. There has been criticism that the £2 million threshold is too low for London, as it could apply to an ordinary house rather than only a mansion.
Valuations and inspections
John-Paul Marks, chief executive of HM Revenue & Customs, told the Treasury Committee that the Valuation Office would need 300 additional staff to introduce the levy. According to him, valuations will be produced using artificial intelligence and publicly available data, including property sales information and registration data.
Home inspections will be carried out only in individual cases, usually at the request of an owner wishing to challenge a valuation. Marks called such visits a last resort and said they are possible only with the owner's consent. Earlier, the Valuation Office explained that an inspection may be needed when certain characteristics can be confirmed only inside a house or when repeat measurements are required.
A £200 fine is предусмотрен for deliberately obstructing a valuer's work, while failure to provide information without a valid reason can result in a fine of up to £500. Conservative Party Shadow Housing Secretary James Cleverly said that families could face inspections by tax officials in gardens and homes. The government called the new levy a way to address a situation in which a Band D home in Darlington pays more council tax than a £10 million mansion in Mayfair, London.
