URGENT UPDATE: Major changes to council tax regulations are set to impact thousands of homeowners in the UK. HMRC officials have just announced a new High Value Council Tax Surcharge, commonly known as the ‘mansion tax’, which will take effect in April 2028. This levy will impose an additional annual charge ranging from £2,500 to £7,500 on properties valued above £2 million.
Top officials, including Jonathan Russell, chief executive of the Valuation Office Agency (VOA), revealed that approximately 200,000 properties are expected to fall under this new charge. The majority of these homes will be located in London, the South East, and the East of England, with some areas facing no additional charges at all.
The charge is a key element of the Autumn Budget 2025 unveiled by the Labour government. Homeowners should prepare for substantial changes in their council tax bills, which will now be calculated based on updated property valuations. Russell emphasized that the VOA will utilize existing data as well as open-source information from the Office for National Statistics and the Land Registry to ensure accurate valuations.
Russell stated, “
We want people to have confidence in the valuations that we produce. We do not want there to be appeals because that is in no one’s interest.
” The VOA is committed to transparency during the valuation process, which will also take into account any modifications to properties that could affect their market value.
This initiative is expected to prompt a thorough review of properties, particularly those with indicative valuations between £1.5 million and £5 million. Russell noted, “We will be looking at the ones in between those two levels to make sure we get the banding absolutely accurate.”
As the implementation date approaches, homeowners can anticipate further details regarding the appeals process, which will require legislative consultation. Russell confirmed that plans for this consultation will roll out in the coming months, addressing reliefs, appeals, and complexities surrounding property ownership.
This new tax structure is poised to influence financial planning for homeowners across the UK, especially those in high-value areas. For the latest updates and money-saving tips, stay tuned to our coverage.
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