The Scottish Government has unveiled a proposal that could see high-value homeowners face council tax bills nearly double those currently paid by the majority. Under the plans, homes valued over £2m would see their annual council tax bill rise to around £7,651 – a hike of approximately £3,600.
Properties worth between £1m and £2m could also see an increase of about £720, pushing their annual bills to roughly £4,800. The proposed changes aim to introduce two new council tax bands: Band I for homes valued between £1 million and £2 million, and Band J for properties exceeding £2 million.
These changes would contrast with the current system, which has eight bands (A-H), with Band H currently having an average annual bill of approximately £4,051. Ministers estimate these new rates would affect around 15,000 properties, accounting for just 1% of Scotland's total housing stock.
A key component of the Scottish Government's recent Budget announcement, the levy requires parliamentary approval before it can be implemented in April 2028. A 'targeted revaluation' will be conducted by the Scottish Assessors on all properties estimated to be worth more than £1 million, regardless of their current band, at a cost of £5 million.
Deputy First Minister Jenny Gilruth has defended the proposal, stating it aims to ensure the wealthiest contribute more. She highlighted that some multi-million-pound properties currently face council tax bills not significantly different from those in more modest homes. Green MSP Lorna Slater welcomed the consultation as an 'important milestone', asserting that the mansion tax would provide vital funds for local services and address Scotland's housing emergency.
However, the Scottish Conservatives have criticised the proposal, with finance spokesperson Craig Hoy warning it could deter property buyers in Scotland. He argued that targeting a small minority of properties would yield insufficient revenue, especially once administrative costs are considered. The existing council tax bands are based on outdated 1991 valuations, with cross-party consensus on the need for reform.