Taking stock of assets is crucial as more Council Tax upheaval to come in years ahead amid growing reform debate

Published byRoss Wallace

8th July 2026

A few months into the new financial year and with a Scottish Parliament Election fresh in the mind, one issue which just won’t go away is council tax.

From new council tax and second home tax rates to the forthcoming so-called Mansion Tax and the potential for future reform, the property taxation landscape across Scotland is changing at a rapid pace.
For many years council tax freezes were common, but the hammer is starting to come down on homeowners, renters and landlords alike.

Second home tax
In December 2024, second home tax (officially called Additional Dwelling Supplement or ADS) was increased, meaning an extra 8% tax applying to the total purchase price of additional residential properties like second homes, holiday homes, and buy-to-lets costing £40,000 or more.
Local councils also now have the authority to charge a premium of up to 100% (double) council tax on homes that are not used as a primary residence.

The second home tax is most important in England, where there is a pressing need to free up housing stock for people looking to get onto the property ladder or to take their next step.
However, it doesn’t mean that we in Scotland don’t have our own issues with lack of available housing stock.
There’s a push to try to free up as much housing stock as possible by building new houses and reducing the number of properties people own.

Local authorities may take the view that many people won’t be feeling sorry for those with two or three homes. It may feel like an easy win for them to discourage owning multiple homes through a hefty tax that boosts their budgets.
However, many are already quite concerned about second property tax and the general council tax increases across the board.

One thing that is being considered is whether people can register their properties for business rates rather than council tax.There are restrictions on that, however, in that the property would have to be available for rent for at least 140 days a year – and it would need to be rented for 70 days.
In terms of people looking to purchase a second home, there needs to be the understanding that this really might be quite expensive to run.

One solution is making your second home available to rent on a permanent basis or making it available for short stays through one of the many online platforms available.
Ultimately, the advice is to make use of the property more and make sure you’re protected as a landlord or host.
Take a moment to take stock of the latest guidelines and rules and seek expert counsel if you need assistance in exploring your options.

Mansion Tax
Looking ahead to the future, the so-called Mansion Tax will see two new higher council tax bands come into force in Scotland from 2028, which will have a significant impact on people with more expensive properties.
While some may have the wealth to cope with this new premium, it could have a considerable effect on others, particularly those whose home has crept into that tax bracket as house prices in the area have increased over time, despite it falling under the threshold when it was purchased.

You could also have a situation where a family has inherited a property and kept it for practical or sentimental reasons, and not financial gain – they will undoubtedly feel that financial impact.
We still await clarity on exactly how the Mansion Tax will work since it was announced, but many believe it is likely we will see it delegated to local councils to implement.

Reform and increased challenges to council tax system?
One thing that seems almost certain is that the appetite for reform will continue to grow and Valuation Joint Boards will be increasingly busy with disputes.There are various exceptions with people successfully reducing their council tax bands, but they are in the minority.When Mansion Tax comes in and these values are put in place, I suspect it may encourage more people to mount a challenge.

Ross Wallace is a Senior Solicitor in the Private Client team based in Glasgow.
For any questions pertaining to property tax, contact privateclient@wjm.co.uk for further information, legal advice and support.