Introduction
Her Majesty’s Revenue and Customs (HMRC) has announced plans to recruit up to 1,000 valuation officers as preparations intensify for a forthcoming property surcharge targeting high-value homes in England. This expanded workforce comes amid measures to implement an annual tax levy on residential properties valued over £2 million, marking a significant move by the government to address high-end property taxation.
The policy, initially outlined during the Budget last year, is set to commence in April 2028 and aims to reassess around 200,000 properties, according to official figures. The government intends the surcharge to be administered via council tax bills, with the additional funds supporting public finances.
Mansion tax policy moves forward
Chancellor Rachel Reeves unveiled the proposal for the new property surcharge, commonly referred to as a mansion tax, as part of broader fiscal measures intended to enhance revenue from wealthier households. The policy stipulates that homeowners of properties valued above £2 million will pay an annual surcharge starting at £2,500, increasing to £7,500 for homes valued at £5 million or more. The planned rollout is scheduled for April 2028, affecting a substantial segment of the prime property market.
Valuation Office Agency reassigned
The Valuation Office Agency (VOA), which currently monitors council tax banding in England and Wales, will transition to HMRC administration in April this year. The agency is tasked with reassessing property values to determine liability under the new surcharge scheme. HMRC confirmed that the process of property valuation would begin this year, in advance of the policy’s implementation.
Scope of property reassessments
VOA chief executive Jonathan Russell informed the Treasury select committee that not only homes above the £2 million threshold but also those valued from £1.5 million upwards would be considered for reassessment.
'Between 150,000 and 200,000 houses could be affected, with all properties previously valued at up to £5 million being rechecked,' Russell stated. The aim is to ensure accuracy and comprehensive coverage when applying the new tax surcharge.
Parliamentary questions on recruitment
Concerns regarding the assignment of additional staff were raised in Parliament. Sir James Cleverly, the shadow local government secretary, questioned how many of the 1,000 recruits would concentrate directly on the high-value council tax surcharge.
Labour MP Dan Tomlinson responded that the VOA’s resource planning for the surcharge is ongoing, and it remains unclear how many new hires will be dedicated solely to this work. Official statements confirmed that professional valuers and support staff will be brought in to handle the increased demand.
Administrative and legal concerns
Property industry commentators have voiced concerns about potential administrative backlogs. Brendan Kay, of Parkers estate agents, noted that affected homeowners are likely to scrutinise their property valuations closely, possibly leading to numerous challenges and appeals.
'That creates a substantial administrative burden and risks clogging up the system for years,' Kay explained. Experts caution that these challenges may extend the time required to resolve disputes over property assessments.
Final Summary
The government’s decision to recruit up to 1,000 valuation officials marks a critical phase in implementing the new mansion tax. With substantial property reassessments ahead and a planned annual surcharge targeting high-value homes, both HMRC and the Valuation Office Agency face significant operational and administrative challenges.
While the policy aims to enhance fiscal revenues and ensure equity, concerns remain regarding potential backlogs and valuation disputes. Ongoing developments in HMRC’s recruitment and resource allocation will influence the pace and effectiveness of the overhaul. For property owners and professionals seeking to stay updated, tax and valuation updates can be tracked through services like Pie.
