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VOA to Revalue £1.5m-Plus Homes to Enforce £2m Council Tax Surcharge

The valuation agency will check properties from around £1.5m to ensure none that now exceed £2m escape the charge.

Overview

  • VOA chief Jonathan Russell told MPs that an estimated 150,000 to 200,000 homes will be reassessed, with properties previously valued up to £5m also rechecked.
  • The reassessment will rely on property-attribute data and an automated valuation model using recent sales, aerial mapping and planning records, a system piloted in Wales.
  • The surcharge takes effect in 2028 in four bands, adding £2,500 a year for homes just over £2m up to £7,500 for properties worth £5m or more, with the OBR forecasting about £400m a year by 2029–30.
  • Consultations on exemptions and appeals will run in the coming months, and the VOA is scheduled to move into HMRC in April 2026.
  • Separately, Scotland announced two new top council tax bands for homes over £1m that will begin in April 2028 after updated valuations.