Miliband’s mansion tax misery: 120,000 will have to revalue homes

Latest research indicates British homeowners could spend £110m on revaluations

Implementation of Labour’s divisive mansion tax policy could affect as many as 120,000 British homeowners, costing a total of £110m in revaluations.

The figures come from research by estate agents Savills, which indicates the cost of such a revaluation would be up to £4,800 per home owner.

The research also warns that taxpayers could end up having to stump up funds – as much as £65m – when revaluations are contested.

Savills also warned that this burden could even cost the Treasury more than it would raise on properties worth between £2m and £3m.

The tax could also hit people who are asset rich, in terms of property, but cash poor, the research warns. It says many of those affected may not earn much, but will have owned properties over a long period of time and seen values soar above the mansion tax threshold of £2m.

Lucian Cook, director of residential research at Savills, said: “The valuation requirements and associated potential for dispute mean that a mansion tax would be particularly costly and complicated to administer, reducing its efficiency as a revenue raiser for the Treasury.

“The potential costs borne by the tax payer will be a further concern to long term owners who are often asset rich but cash poor and for whom the tax itself is a significant concern.”