SNP ministers in Scotland have proposed increasing council tax rates for homes valued at over £1 million, a move that could effectively double the tax on the country's most expensive properties. This proposal is part of a broader effort to reform Scotland's council tax system, which relies on property valuations from 1991. The government stated that any changes would be made in conjunction with local authorities and through cross-party discussions.
Deputy First Minister Jenny Gilruth indicated that the approach to taxation is centered on fairness, aiming to ensure that wealthier individuals contribute more. She highlighted that some multi-million-pound properties currently have council tax bills comparable to those of much more modest homes. The UK government has also announced plans for a similar "mansion tax" on properties in England valued above £2 million.
Green MSP Lorna Slater welcomed the consultation on these reforms, calling it an "important milestone." She believes the proposed tax would generate essential funds for local services like schools and libraries, while also addressing Scotland's housing emergency. However, Scottish Conservative finance spokesperson Craig Hoy expressed concerns that the tax could deter people from buying property in Scotland. Hoy also argued that the revenue generated from taxing a small percentage of properties might be insufficient to cover administrative costs.
The Scottish government has consulted on reforms to the council tax system in the past, but concrete plans have yet to materialize. The current system, with its outdated valuation bands, has faced criticism for not accurately reflecting current property values.