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Government Sets 2026 Desktop Valuation for High-Value Council Tax Surcharge

Experts warn automated assessments could push more homes over the £2 million threshold, triggering mass appeals.

Overview

  • Labour’s surcharge on properties valued above £2 million is due from 2028, with four bands charging from £2,500 up to £7,500 a year.
  • The Valuation Office Agency says it will run a separate, targeted valuation in 2026, independent of 1991 council tax bands, with revaluations every five years.
  • Assessments will lean on sales data, aerial mapping and planning records, with appeals allowed and inspections possible where needed.
  • Industry figures caution desktop models could overstate values by around £30,000, risking capacity strains for roughly 8,000 residential valuers and a wave of disputes.
  • The government plans consultations in early 2026 on reliefs, exemptions and a support scheme, with social housing exempt and councils to be funded for added administration; analysts say deferral could leave estates with large accumulated bills.