Share your views on the ‘mansion tax’
CLA Chief Surveyor Andrew Shirley explains what the High Value Council Tax Surcharge means for properties in England and asks for your thoughts in our survey
The Chancellor’s version of ‘mansion tax’ is called the High Value Council Tax Surcharge. This will be paid annually on houses worth more than £2m.
While council tax will continue to be paid by the occupier, the additional High Value Council Tax Surcharge will be paid annually by the owner.
In the new year, the government is publishing a consultation and we require evidence from our members to help gauge our response. We therefore ask that you complete the short survey below to express your views (unless you have already done so for the Historic Houses organisation).
What is the High Value Council Tax Surcharge?
This surcharge applies to houses in England worth more than £2m and this value will be banded to determine rate of surcharge that will be payable. Charges will increase in line with Customer Prices Index (CPI) inflation each year from 2029-30 onwards, and the property values bands are due to be updated every five years.
High Value Council Tax Surcharge charging structure:
|
Property value threshold |
Rate |
| £2.0m-2.5m | £2,500 |
| £2.5m-3.5m | £3,500 |
| £3.5m-5.0m | £5,000 |
| £5m+ | £7,500 |
No detail or methodology for what has been described as a targeted valuation exercise has been published yet. The CLA remains sceptical of how accurately this will be done, especially for individual unique properties that have not been on the market for a long time (if ever).
We are also concerned that the imposition on the owner creates a dangerous precedent, and that the thresholds could reduce – as they have done with Annual Tax of Enveloped Dwellings (ATED) – and the sums charged could increase beyond what is envisaged.
Most of the details, however, will emerge during and following the consultation is launched in the new year.
CLA lobbying
The CLA is writing to HM Treasury ahead of the consultation and will continue to lobby for realistic valuations; that properly reflect the location, condition and state of repair. This could make a significant difference, for example, to heritage properties.
There will also need to be exemptions for any parts of houses that are in agricultural use (e.g. a farm office), or properties where there is dual use (where council tax and business rates are due). Where properties are tenanted or held by different individuals or trusts, then this should be reflected in the valuation. There will also need to be a cheap, robust and fast appeals mechanism.
Please share your thoughts in our short, anonymous survey above.
