SNP Proposes Council Tax Hike on Scottish Homes Valued Above £1 Million

Scottish National Party ministers have put forward a legislative proposal that could see council tax rates substantially increase for properties valued above £1 million. The move is designed to double the current annual council tax liability for Scotland's highest-value homes.

Under the proposed changes, properties in the top valuation band (Band H) would face a council tax multiplier of 2.5, up from the current 1.5. This adjustment would allow local authorities to significantly raise revenue from high-end properties. For instance, a Band H home currently paying £4,000 annually could see its bill rise to £6,666 under the new system. Specific figures would be subject to local council decisions, as they retain the power to set the actual rates.

The Scottish government states the reform is intended to create a fairer and more progressive tax system, with revenue directed towards essential local services. Critics, however, argue that such a steep increase could disproportionately affect a segment of homeowners, potentially impacting property market liquidity in affected areas.