Council Tax High-Value Property Bands (Mansion Tax): consultation

3. High-Value Property Bands

3.1 The New Bands - Band I & Band J

The Scottish Government will introduce two new Council Tax valuation bands above the current Band H:

• Band I: for properties with an estimated open market capital value of more than £1 million and up to £2 million as at 1 April 2026.
• Band J: for properties with an estimated open market capital value of more than £2 million as at 1 April 2026.

The thresholds for the new bands are based on current property values as at 1 April 2026. This is different from the 1991 market reference point used for Bands A to H, reflecting the need to identify high-value properties on a current and meaningful basis.

All other homes will remain on the existing 1991 valuation basis. As such, no property currently worth less than £1 million in Bands A to H will move bands as a result of introducing the high-value property bands.

3.2 Targeted Revaluation

To identify which properties fall within Band I or Band J, Scottish Assessors will carry out a targeted revaluation.

The targeted revaluation applies only to properties estimated to be worth more than £1 million at 1 April 2026 values. The existing 1991 valuation basis for all other properties will remain entirely intact. This means that all other homes in Scotland – i.e. any property estimated to be worth less than £1 million as at 1 April 2026 - will remain on the existing 1991 valuation basis and will remain unchanged in their current Bands A to H.

This targeted approach means the introduction of high-value bands does not constitute a general revaluation of all properties in Scotland. It is a focused exercise applying to a very small number of properties at the very top of the system. The Scottish Government estimates that this is expected to affect fewer than 1% of all homes in Scotland - approximately 15,000 properties in total (see Figure 3 below).

The new bands will affect only those households living in properties estimated to be worth more than £1 million. No household living in a property worth less than £1 million will face any additional Council Tax charges as a result of this change. The existing Council Tax position of all other households will be unaffected.

3.3 Revenue

Any additional revenue raised through the new bands will be retained in full by local authorities to support the local services communities rely on. The distribution of high-value properties varies across Scotland, and the allocation of additional revenue between councils will be agreed with the Convention of Scottish Local Authorities (COSLA) through established governance and settlement processes.