Views sought on mansion tax

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 one per cent 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 Finance Secretary 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.”