Your home is only worth what someone else will pay for it, so the adage goes. However, from 2028 and beyond, if your home is around the £2 million mark, a total stranger (or algorithm) who has not even seen inside your property will be deciding its value — with expensive consequences.
Labour’s mansion tax as confirmed in last week’s Budget will be imposed via the council tax structure, placing an annual charge on homes in the bands F, G and H if valued by the Valuation Office Agency (to become part of HMRC) as over £2 million. That levy, added to the council tax bill, will amount to £2,500 and £7,500 for homes priced more than £5m. The arduous valuation exercise starts in 2026 and will be slapped on these properties from 2028. Revaluations will take place every five years.
