Scottish Government
 Printable version
|
Mansion tax rates consultation
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 Jenny Gilruth 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.
Original article link: https://www.gov.scot/news/mansion-tax-rates-consultation/
