A MANSION TAX FOR SCOTLAND?

The Scottish Government has consulted on the proposed rates for two new council tax bands for higher value residential properties which are due to come into effect on 1 April 2028. Under the proposals, a new Band I would apply to properties valued between £1m and £2m, with a new Band J applying to properties valued at more than £2m. 

The consultation forms part of a wider programme of council tax reform. Illustrative figures in the consultation suggest annual council tax charges of approximately £4,770 for Band I properties and £7,650 for Band J properties, although the final amounts have not yet been determined and may vary between council areas. 

The proposals also include a targeted revaluation of residential properties believed to be worth more than £1m as at 1 April 2026, together with consideration of affordability and transitional protections. 

Owners of higher-value residential properties should keep an eye on developments as the changes could result in increased council tax liabilities for some of Scotland’s most valuable homes. Details of the proposals are available here. Although the consultation has now closed, the Scottish Government’s 2026-2031 Programme for Government confirms that a Council Tax (Scotland) Bill will be brought forward to introduce the new bands as part of its wider programme of council tax reform.  

If you would like to discuss any of these aspects further, please click the image below and get in touch with your Turcan Connell contact.