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Scotland has launched two new council bands for high-value properties within the nation’s Finances announcement.
From 1 April 2028, properties valued at between £1 million and £2 million will fall beneath the brand new Band I, whereas properties over £2 million will fall beneath Band J. How a lot is charged with these two bands will likely be right down to particular person councils, although some have already labelled this variation as a ‘mansion tax’.
David Alexander, the chief govt officer of dealer DJ Alexander Scotland, mentioned: “There may be to be a model of the mansion tax in Scotland with two new charges of council tax bands for properties price greater than £1m beginning in 2028.
“As with the Westminster proposal the difficulty will likely be over who values the properties and, given the comparatively low variety of properties of this valuation in Scotland, whether or not that is actually about income elevating or political level scoring.”
Scotland additionally raised primary (20%) and intermediate (21%) revenue tax thresholds by 7.4%, that means that from 2026-27 extra earnings will likely be taxed at decrease charges.
John Blackwood, chief govt of the Scottish Affiliation of Landlords, mentioned: “Scotland’s landlords will likely be upset by this finances, specifically by the finance secretary’s refusal to rule out the 2p enhance on revenue tax gained from property that we’ve seen elsewhere within the UK.
“That this tax might come into impact in 2027-28, topic to a legislative consent movement, will trigger additional uncertainty inside Scotland’s personal rented sector.”
Over the subsequent 4 years, Scotland is investing £4.9 billion in 36,000 inexpensive properties.
The federal government mentioned it could work with companions just like the Scottish Nationwide Funding Financial institution (SNIB) to speed up housing funding.
Alexander added: “Whereas the promise of report ranges of funding for inexpensive housing… over the subsequent 4 years is an enchancment it does little to handle the long-term stagnation within the constructing of properties for the social housing sector.
“On condition that the housing emergency in Scotland will likely be two years outdated in Could when the Scottish elections are held this was a chance to supply a coherent, well-constructed technique to take care of the scarcity of properties.
“However with no extra assist for housebuilders (the place newbuild begins are additionally at a decade low degree) or for the personal rented sector (PRS) which is an integral a part of resolving the housing emergency that is missed alternative.
“What has been provided right here is extra of the identical short-termism with little concern for the place the housing sector will likely be in 5 years-time.”
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