Overview
- Property specialists warn desktop valuations could overstate high-end home values by up to about £30,000, potentially pulling many more owners into the new charge and spurring mass appeals.
- The surcharge is scheduled to start in April 2028, with four bands ranging from £2,500 a year for £2m–£2.5m homes to £7,500 for properties worth over £5m, based on a separate 2026 valuation by the VOA.
- Government guidance says fewer than 1% of properties will exceed the £2m threshold, while Knight Frank research suggests as many as 190,000 homes could qualify by 2028.
- Agents and analysts flag capacity and administrative risks, noting only about 8,000 registered residential valuers and the likelihood of large backlogs if many owners challenge assessments.
- AJ Bell analysis indicates that deferring the surcharge could leave significant liabilities for estates, estimating roughly £46,700 after 15 years for a £2m home and about £140,000 for £5m-plus properties.