HMRC agents are set to inspect homes with ponies, scenic views and balconies in order to value homes for the “mansion tax”.
Officials will be sent to properties to consider architectural styles, numbers of bedrooms and whether homes have swimming pools or tennis courts before determining whether homes should be taxed at a higher rate.
The exercise by HMRC is set to come as former Chancellor Rachel Reeves announced that homes worth more than £2m would be hit with a surcharge of at least £2,500 a year and up to £7,500 if they are worth over £5m.
The new tax, which will net the Treasury a loss before a £400m-a-year boost in receipts by 2030, is part of the government’s efforts to reform council tax.
A Freedom of Information request by the Conservatives unveiled a guide used by agents at HMRC’s Valuation Office Agency to determine property values.
The Tories have said that the list exposes the government’s plans to impose an “annex tax”, “penthouse tax”, “pony tax” and “scenic view tax”.
The opposition party labelled a database that will use AI to value properties with the help of inspectors as “Big Brother”, referring to the totalitarian figure in George Orwell’s dystopian novel 1984.
HMRC plan is ‘invasion of privacy’
“Labour’s plan to tax bedrooms, bathrooms and balconies confirms they will stop at nothing in their search for new ways to squeeze families for more cash,” shadow chancellor Sir Mel Stride said.
“They are more than happy to invade the privacy of people’s homes if it means they can take more money from hardworking people.
“This is another Labour tax on aspiration, carried out through alarmingly authoritarian means. The Conservatives will resist these plans and fight to keep tax on the family home down.”
Conservative Party chairman Kevin Hollinrake said a plan to send HMRC agents to properties was “sinister” and amounted to a “huge invasion of privacy”.
Council tax is still based on property valuations from 1992, with reforms proving to be controversial given it could lead to public backlash and put some Labour and Tory constituency strongholds at risk.
Some councillors have hit out at Reeves’ tax plans, which will come into force in April 2028.
Wandsworth, Kensington and Chelsea, Richmond and Westminster council leaders warned that residents in four London boroughs could pay around £270m of the estimated £400m gains from the new tax.
The government was approached for comment.
