Home » SNP Mansion Tax Plan Creates New Council Tax Bands I and J

SNP Mansion Tax Plan Creates New Council Tax Bands I and J

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Scottish Parliament Building

EDINBURGH, July 7 — The Scottish Government has formally launched a consultation on adding two new top-tier bands to the country’s council tax system, a move that would directly affect an estimated 15,000 of the most expensive homes in Scotland. The proposal, put forward by the SNP administration, would introduce Band I and Band J to the existing eight-band structure, which currently ranges from A through H. Under the plan, Band I would apply to homes valued between £1 million and £2 million on the open market.

The average annual bill for these properties would be £4,770. Band J would cover homes worth more than £2 million, with an average yearly charge of £7,650.

The new bands represent a significant increase for those affected. The Scottish Government’s figures show that Band I households would see an average rise of approximately £720 per year compared to the current Band H rate. The jump for Band J properties is steeper still, at about £3,600 per year more than what Band H owners currently pay.

The consultation document notes that the new bands would apply to roughly 15,000 properties across Scotland. That figure represents a tiny fraction of the country’s total housing stock, but it would target the most valuable segment of the market.

How the system works now

Scotland’s council tax system currently has eight bands, labelled A through H. The bands were set when the tax was first introduced in the early 1990s. The current proposal does not involve revaluing all properties.

Instead, it would add two new bands at the top end of the scale, leaving the existing bands unchanged for the vast majority of homeowners. The Scottish Government’s consultation is seeking views on how the new bands would be implemented, including the exact thresholds and billing amounts.

What this means for homeowners

For the roughly 15,000 households that would fall into the new bands, the financial impact is substantial. The average Band I bill of £4,770 represents a noticeable increase over the current Band H average. For Band J properties, the £7,650 average annual charge is more than double what many Band H owners currently pay.

The consultation allows for public input. Homeowners, local authorities, and other stakeholders can submit their views before any final decisions are made.

Looking ahead

The consultation period is now open, and the Scottish Government will consider the responses before finalising any legislation. The new bands would require changes to the existing council tax framework. The government has not indicated whether it plans to introduce the new bands in the next financial year or at a later date.

The proposal is a significant change to Scotland’s local tax system, but it is a targeted one. Only a small number of properties — roughly 15,000 — would be affected.

For the vast majority of homeowners, the existing bands and rates would remain unchanged.

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