Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

HMRC: Most Mansion Tax Decisions Will Not Require Home Visits

HMRC has confirmed that most decisions regarding the upcoming High Value Council Tax Surcharge (HVCTS), also known as the 'mansion tax', will be made using existing information rather than through home visits. The HVCTS will apply to properties valued at £2 million or more from April 2028.

According to HMRC, professional valuers will use a range of freely available information sources to determine property values for the surcharge. The majority of banding decisions are expected to be made without the need for property inspections. This clarification follows reports suggesting that valuation agents would be visiting homes and that those refusing inspections could face fines of up to £200.

The HVCTS was introduced by then-Chancellor Rachel Reeves to address perceived imbalances in the council tax system, where owners of lower-value properties may pay more council tax than those with higher-value homes. The surcharge will start at £2,500 for properties valued between £2 million and £2.5 million, rising to £7,500 for homes worth £5 million or more. Valuations will be based on 2026 prices as assessed by the Valuation Office, and the surcharge will increase annually in line with Consumer Prices Index (CPI) inflation from 2029-30.

The Valuation Office, now part of HMRC, already conducts home inspections and typically notifies homeowners in advance. Tenants who believe there are inaccuracies in HMRC's decisions can contact the organisation to request amendments.

The government is still consulting on the final approach to the HVCTS. It has been reported that around 1-2% of homes in England may be liable for the surcharge, with most affected properties located in London and the South East.