The Valuation Office Agency (VOA) has provided a significant update regarding forthcoming changes to council tax bands, as the government prepares to introduce a new mansion tax from April 2028. This major overhaul aims to modernise the property valuation system that has remained largely unchanged since 1991.
Modernising Property Valuations
Jonathan Russell, chief executive of the VOA, has detailed the agency's approach to this substantial shake-up of council tax banding. He explained that the current system relies on property valuations dating back to 1991, which the VOA is now working to update using contemporary data sources.
"We are looking at the data we hold already to make sure that it is up to date and accurate," Mr Russell stated. "We will also be looking at open-source data from the Office for National Statistics and the Land Registry, sales data and stamp duty land tax data."
Focus on Higher Value Properties
The revaluation process will particularly concentrate on properties in the higher end of current council tax bands. Mr Russell emphasised that the VOA will examine properties with indicative valuations around £1.5 million to ensure comprehensive coverage, while properties clearly exceeding £5 million will receive less detailed scrutiny.
"We will be looking at the ones in between those two levels to make sure we get the banding absolutely accurate," he clarified. "It is what we do. For example, every year we will value somewhere in the region of 200,000 houses that have been newly built."
Geographical Distribution and Transparency
The VOA chief executive revealed that a substantial proportion of affected properties will be concentrated in specific regions. "A large number of the properties will be in London and in the south east, and the east of England," he noted, while acknowledging that some local authorities might have no properties meeting the new criteria at all.
Transparency remains a cornerstone of the VOA's approach. "When we are doing the valuations, we will make sure that we are public about it," Mr Russell assured. "We will go out and tell people how we are doing the valuation and the criteria that we are using. At the end of the day, we want people to have confidence in the valuations that we produce."
Legislative Framework and Appeals Process
The implementation of the high-value council tax surcharge requires new legislation and comprehensive consultation. Mr Russell indicated that consultation plans are expected to be announced in the coming months, covering crucial aspects including:
- Relief mechanisms for affected property owners
- The appeals process for challenging council tax banding decisions
- Definition of scope and complex ownership arrangements
- Billing procedures focusing on property owners rather than occupiers
"The process for the high-value council tax surcharge will require legislation and consultation," Mr Russell explained. "I know there are plans to do the consultation in the next few months. That consultation will look at, for example, reliefs, appeals, how you might challenge your council tax banding."
Building Confidence in the System
The VOA aims to minimise appeals through clear communication and transparent methodology. "We do not want there to be appeals because that is in no one’s interest," Mr Russell emphasised. "We want to make sure we are open, transparent and clear about the data that we are using, how we have applied it and how we have come to the valuation."
This comprehensive update from the Valuation Office Agency marks a significant step toward implementing the government's mansion tax policy, with detailed planning underway to ensure a smooth transition when the new system takes effect in 2028.
