Who should pay the tax surcharge on rental properties?
Summary
Propertymark has responded to the government’s consultation on the proposed High Value Council Tax Surcharge, highlighting unresolved issues around valuation, liability, enforcement and administration. The body says the scheme could be difficult to implement fairly, particularly for rented homes and for properties that have not changed hands for many years.
Why it matters
Residential surveyors may be called on to provide valuations for high-value homes if the surcharge is introduced, and the article highlights potential capacity and methodology challenges. It also signals possible future compliance and advisory issues for landlords, agents and owners of affected properties.
Key points
- HVCTS would apply to English residential properties valued at £2m or more from April 2028.
- Propertymark questions how liability should work for rented properties and suggests landlords should be able to decide who pays.
- The body warns there may not be enough qualified valuers to assess the estimated 165,000 affected homes.
- It also raises concerns about council resourcing, enforcement and the reliability of online or appraisal-based valuations.
- Propertymark supports deferrals and some exemptions, but rejects an extra surcharge for non-UK resident owners.
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