Scotland Mansion Tax Rates Consultation

Scotland’s “mansion tax” consultation introduces two new Council Tax bands — Band I and Band J — aimed at high‑value homes worth over £1 million and £2 million. The Scottish Government says the change targets fairness at the top of the system, affects fewer than 1% of homes, and keeps all extra revenue within local councils.

What’s being proposed?

• Band I: Homes valued £1m–£2m Illustrative increase: ~£720 above current Band H.

• Band J: Homes valued over £2m Illustrative increase: ~£3,600 above current Band H.

These figures are illustrative only — final rates will be set after consultation responses are analysed and then laid before the Scottish Parliament.

Who will be affected?

• Fewer than 1% of Scottish homes fall into these value ranges.

• Current discounts, exemptions and Council Tax Reduction still apply, regardless of band.

Why introduce these bands?

Deputy First Minister Jenny Gilruth argues that:

• Multi‑million‑pound homes currently pay Council Tax not much higher than far less valuable properties.

• The reform is about fairness and asking the wealthiest to contribute more.

• All additional revenue will be retained by local councils, unlike the UK Government’s proposal for England where funds would go to HM Treasury.

Revaluation and implementation

• Properties estimated to be worth over £1m will undergo a targeted revaluation based on 1 April 2026 market values.

• All other homes remain on 1991 valuations and will not be reassessed.

• New bands are planned to take effect from 1 April 2028, subject to parliamentary approval.

Revenue expectations

The Scottish Government estimates the new bands could raise £12m–£16m per year, reflecting the small number of affected properties.

Comparison with England

The UK Government is considering a similar measure for homes worth over £2m, but revenue would go to HM Treasury, not local councils.

Consultation timeline

The consultation runs until 24 August 2026. Afterwards, responses will be analysed and final rates presented to the Scottish Parliament.