
Scottish Budget 2026: Mansion tax via new council tax bands confirmed
Two new council tax bands were announced for properties valued at over £1m, due to come in by April 2028.

Two new council tax bands were announced for properties valued at over £1m, due to come in by April 2028.

By making second homes more expensive, the council hopes more properties will return to the local market.

Chancellor Rachel Reeves is considering major reforms to the UK’s property tax system, including scrapping Stamp Duty for buyers.

Melanie Spencer said: “It’s early days but if these reforms proceed as planned, some boroughs could lose more than 70% of their current Government grant."

Rainbow said: “The empty homes tax was meant to be a deterrent. It’s turned out to be little more than background noise."

Council Tax bills in England are set to rise by a total of £2.1bn this financial year.

Research from Go.Compare found that Birmingham has seen the largest jump in costs across all eligible properties, totalling an extra £136.8m during this period.

Rising Council Tax bills and falling support are making the tax increasingly resemble the Poll Tax it replaced, with poorer households spending a growing share of their income on it, according to new research from the Resolution Foundation.

More than half of properties in Scotland are now in the 'wrong band' when comparing current values to the 1991 assessments.

Council tax arrears in the UK have reached £6bn as of March 2024, prompting StepChange Debt Charity to call for reforms in debt collection practices and better support for vulnerable households.

Scottish Borders Council approves a 200% Council Tax increase for second homes, effective from 1st April 2024.

AJ Bell shared its household finance predictions for the new year, commenting on Capital Gains Tax and the cost-of-living crisis.
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