Practicalities of the Mansion Tax?
I can’t get my head around how this Mansion Tax can ever work in practice.
HMRC can surely only work with agreed valuations from the District Valuer, not the likes of Rightmove / Zoopla.
If there is no surcharge council tax payable at £1.999m and £2m pays an extra £2500, anything up to say £2.25m is immediately downvalued to under £2m, or there will be shedloads of appeals.
Meanwhile, it’s killed the top end of the market, which of course will filter down the values. I am selling due to the additional tax; therefore, it should be a probate value, not the open market value, reliant on many months of marketing with a willing vendor and purchaser.
The FT is reporting that the budget has spent £8b and collecting no immediate extra tax of the £26b, so the immediate cash flow is now even worse.
How can this be practical?
Simon
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Member Since January 2020 - Comments: 134
9:47 AM, 1st December 2025, About 5 months ago
It’s as though they were winding up a meeting and realised that they’d forgotten about the need for Council Tax reform, including creating a number of additional bands.
However, couldn’t be arsed to do the job properly so went for blunt ‘cliff edge’ approach.
Maybe I’m being unfair and they’re all just too thick to realise the dramatic effect that this will have on properties valued close to the margins and the consequential distortion across the market as a whole?