A home worth more than £2 million in Scotland would pay about £3,600 a year more in council tax than a Band H property, under plans the Scottish Government put out for public consultation in July 2026.
The proposal adds two bands at the top of the system. Band I would cover homes valued between £1 million and £2 million, with an indicative increase of around £720 over Band H. Band J would take everything above £2 million. Ministers estimate that about 15,000 of roughly 2.7 million residential properties would be affected, fewer than 1% of the total, and that the change would raise between £12 million and £16 million.
The bands were first announced in the Scottish Budget 2026-27 and later appeared in the SNP’s 2026 manifesto and 100 Days Plan. They would take effect on 1 April 2028, subject to the Scottish Parliament agreeing. The rates in the consultation paper are illustrative. Final figures will be set in legislation.
How it would work
Scottish Assessors would carry out a targeted revaluation of properties worth over £1 million, using market conditions as of 1 April 2026. Every other home stays on the existing 1991 valuation base. Discounts, exemptions and the Council Tax Reduction Scheme remain in place. All the extra revenue would stay with local authorities.
Jenny Gilruth, the Deputy First Minister and finance secretary, framed it as a question of fairness. “Our approach to tax is based on fairness – asking the wealthiest among us to contribute a bit more,” she said. She added that some multi-million pound properties have council tax bills “not materially different from those faced by people living in far more modest homes.”
She also pointed to a difference with London. The UK Government’s proposals for a similar scheme, Gilruth said, would send the money back to the Treasury.
Property industry pushes back
Propertymark opposes the plan as drawn. It points out that council tax raises around £3.5 billion for local government, so £12 million to £16 million is a small addition. About £5 million has already been set aside to run the changes, before any cost from appeals and deferred payments. The organisation warns of “significant complexity for comparatively little extra revenue.”
Valuation is one worry. Homes above £1 million tend to be individual, sell less often and are hard to value by automated methods, and a property near a band threshold gives its owner a reason to appeal. Propertymark also fears for older owners who are asset rich but cash poor, and says the bills would fall unevenly, with Edinburgh and some rural areas holding more of the affected homes. It wants lower Land and Buildings Transaction Tax and Additional Dwelling Supplement instead.
The consultation is separate from the government’s wider work on council tax reform. Independent analysis of that engagement is due to be published later in the year.
Sources
- Council Tax High-Value Property Bands (Mansion Tax): consultation
- Scottish Government consults on new council tax bands for high-value homes | Public Sector Executive
- Propertymark calls for tax cuts as Scotland plans new council tax bands
