HMRC inspectors may be able to visit homes to establish if they are liable for the new High Value Council Tax Surcharge, often called the 'mansion tax', a report in The Telegraph suggests. This surcharge, announced by former chancellor Rachel Reeves in last year's autumn Budget, is due to take effect in April 2028.
The tax will impose an annual charge ranging from £2,500 to £7,500 on properties valued above £2m. Initially, HMRC's Valuation Office plans to use publicly available information and third-party data to estimate property values.
However, the report indicates that valuation agents could assess properties where existing records or other data cannot confirm the necessary information to determine if a property is worth more than £2m. Inspections might be required to confirm internal characteristics or if a re-measurement is needed, potentially assessing features such as size, architectural style, and the number of bedrooms, bathrooms, and storeys.
The Telegraph also reported that valuation agents will be able to demand entry for required inspections. Property owners who do not cooperate with an inspection risk a £200 penalty and could face prosecution.