![\"Jenny](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/06\/Jenny-Gilruth.png\")
A proposal to raise the council tax on higher value properties could cause \u201clasting harm\u201d to the Scottish market and punish those on low incomes still living in the family home, it has been claimed.<\/p>\n
The Scottish Government is seeking views on plans to introduce two council tax bands for properties worth more than \u00a31 million and \u00a32m to help fund public services.<\/p>\n
The so-called \u201cmansion tax\u201d would lead to increases of \u00a3720 and \u00a33,600 respectively above the current highest Band H council tax charges. They would apply to fewer than 1% of properties.<\/p>\n
Deputy First Minister and Finance Secretary Jenny Gilruth said: \u201cOur approach to tax is based on fairness \u2013 asking the wealthiest among us to contribute a bit more. <\/p>\n
\u201cAs it stands, some multi-million pound properties have council tax bills that are not materially different from those faced by people living in far more modest homes.<\/p>\n
\u201cOur progressive approach to taxation helps to target investment in economic growth, deliver public services and support cost of living measures not available elsewhere in the UK, such as free tuition, free prescriptions and our plans for a \u00a32 bus fare cap across Scotland.<\/p>\n
\u201cAdditional revenue raised through these new council tax bands will be retained in full by local government to support the local services communities rely on \u2013 unlike the UK Government\u2019s proposals for a similar scheme that are set to be returned to the Treasury.\u201d<\/p>\n
The Scottish Greens MSP Lorna Slater said:\u00a0\u201cThe launch of this consultation is an important milestone. The mansion tax will raise vital funds for schools, libraries and other local services, while helping to respond to Scotland\u2019s housing emergency.\u201d<\/p>\n
Scottish Conservative finance spokesman Craig Hoy said:\u00a0\u201cThis performative proposal is another example of a headline-grabbing SNP idea that falls down on closer inspection.<\/p>\n
\u201cIn targeting a small minority of properties, the revenues these new bands would bring in won\u2019t touch the sides, and that\u2019s before the administrative costs are factored in.\u00a0<\/p>\n
\u201cBut there is a real danger that these punitive rates put people off buying in Scotland, which could damage the entire housing market. \u00a0<\/p>\n
\u201cA mansion tax would also unfairly hit some asset-rich, cash-poor individuals \u2013 such as widows on modest pensions who are still living in the family home. \u00a0<\/p>\n
\u201cLike rent controls, a mansion tax sounds superficially attractive but would actually do lasting harm to the housing market.\u201d<\/p>\n
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