The Scottish Government has launched a public consultation on plans to introduce two new council tax bands for the country’s most expensive properties, in a move designed to boost funding for local public services.
Under the proposals, properties valued at more than £1 million would be placed into a new Band I, while homes worth over £2 million would fall into Band J. The changes are expected to affect fewer than 1% of properties across Scotland.
Proposed increases for top bands
The consultation sets out indicative increases of around:
- £720 above current Band H rates for Band I properties
- £3,600 above current Band H rates for Band J properties
If approved, the new bands would represent the first structural expansion of Scotland’s council tax system in decades, targeting what ministers describe as under-taxed high-value homes.
Scottish Deputy First Minister and Cabinet Secretary for Finance, 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.”
A key element of the proposal is that any additional revenue generated would be retained entirely by local authorities. Ministers have argued that this approach strengthens councils’ ability to fund frontline services at a time of mounting financial pressures.
As part of the reforms, Scottish Assessors will conduct a targeted revaluation of all properties estimated to exceed £1 million in value, based on market conditions as of 1 April 2026.
Importantly:
- Only high-value properties will be reassessed
- All other homes will remain on the existing 1991 valuation base
- Current protections, including discounts, exemptions and the Council Tax Reduction Scheme, will remain in place
The final structure and rates for Bands I and J will be determined after consultation responses are reviewed and discussions with local government are completed. The proposals will then be put before MSPs in the Scottish Parliament for approval.
The Scottish Government is urging individuals, stakeholders and organisations to submit their views as part of the consultation process.
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