The Scottish Parliament has been presented with draft regulations that could enable local authorities to charge up to twice the standard rate of Council Tax on second homes.
The new legislation, which could come into effect from 1st April 2024, is designed to ensure homes are used primarily for living rather than as secondary residences.
Public Finance Minister Tom Arthur said: “We want everyone in Scotland to have a home that meets their needs. We know second homes can sometimes benefit local communities, but they can also restrict the availability of housing and increase costs for people who want to rent or buy.”
The move has received support from a majority of respondents in a consultation with the Convention of Scottish Local Authorities (COSLA). If Parliament approves, it will allow councils to collect additional funds from second-home owners to support local services.
COSLA’s Resources Spokesperson, Councillor Katie Hagmann, welcomed the measure, emphasizing the importance of local decision-making in addressing community needs.
Currently, second homes in Scotland are subject to a 50% Council Tax discount, but many local authorities already impose the full rate. This change could further increase costs for second-home owners. There are 24,287 second homes in Scotland as of September 2022, according to the latest figures.
