- Two new council tax bands for homes worth more than £1
million
Views are being sought on plans to introduce two new council tax
bands for properties worth more than £1 million and £2 million
respectively to help fund local public services across Scotland.
A public consultation seeks responses on possible increases of
around £720 and £3,600 above the current highest Band H council
tax charges.
The final proposed rates for new Band I and Band J properties
expected to apply to fewer than 1% of properties will be laid in
Parliament for MSPs' consideration following analysis of
consultation responses and engagement with local
government. Existing council tax protections, such as
discounts, exemptions and the Council Tax Reduction Scheme, will
continue to apply across all bands.
Deputy First Minister and Cabinet Secretary for Finance said:
Our approach to tax is based on fairness asking the wealthiest
among us to contribute a bit more. As it stands, some
multi-million pound properties have council tax bills that are
not materially different from those faced by people living in far
more modest homes.
Our progressive approach to taxation helps to target investment
in economic growth, deliver public services and support cost of
living measures not available elsewhere in the UK, such as free
tuition, free prescriptions and our plans for a £2 bus fare cap
across Scotland.
Additional revenue raised through these new council tax bands
will be retained in full by local government to support the local
services communities rely on unlike the UK Government's proposals
for a similar scheme that are set to be returned to the Treasury.
In launching this public consultation, we are keen to hear the
views of people and communities right across Scotland.
Background
Consultation: Council Tax
High-Value Property Bands (Mansion Tax)
The consultation will run until 24 August 2026.
A targeted revaluation will be carried out by the Scottish
Assessors on all properties estimated to be worth more than £1
million, regardless of current band, at 1 April 2026 values. The
existing 1991 valuation basis for all other properties will
remain, meaning no other homes in Scotland will change to a new
council tax band.
Band I is proposed for properties with an estimated open market
capital value of between £1 million and £2 million as at 1 April
2026, while Band J will apply to properties worth more than £2
million.
