HMRC tax inspectors to visit high value rental properties
Summary
HMRC valuation agents are reported to be preparing in-person inspections of homes to determine whether they meet the £2 million threshold for the High Value Council Tax Surcharge, due to start in April 2028. The article says the assessments will consider both market value and property characteristics such as rooms, storeys, bedrooms and bathrooms, with refusal to cooperate potentially attracting a criminal penalty.
Why it matters
Surveyors may see increased demand for valuation evidence and scrutiny of high-value residential stock as the surcharge approaches. The proposal also highlights the importance of robust, defensible valuations for tax and compliance purposes.
Key points
- HMRC valuation agents will visit properties to assess whether they are worth £2 million or more.
- The High Value Council Tax Surcharge is due to apply from April 2028 and will be paid by the property owner.
- Inspections may include internal features such as room count, storeys, bedrooms and bathrooms.
- Refusing an inspection is reported to be a criminal offence with a fine of up to £200.
- Zoopla estimates 183,000 homes in England are at or above the threshold, with 75,000 just below it.
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