OBR expects 12,000 households to overturn property surcharge assessments

The Office for Budget Responsibility estimates that more than 12,000 households initially assessed for the new high-value property surcharge may successfully appeal, meaning they were wrongly told they owed it. The figures raise questions about the accuracy and fairness of valuations for a tax that will affect homes just above fixed price thresholds.

The surcharge is due to begin in April 2028 for properties valued above £2 million, with annual charges ranging from £2,500 to £7,500 for homes worth more than £5 million. Of 156,000 households expected to be affected, the OBR estimates 31,200 will appeal and 40 per cent of those appeals will succeed. It also estimates 16 per cent of affected households may need to sell because they cannot afford the charge; property prices and valuations could change before bills are issued.