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

5. Affordability and Protections

The Scottish Government recognises that for some households, moving into a new higher band could represent a significant increase in Council Tax liability. This is particularly relevant for households that are asset-rich but have a more limited income - for example, those who have owned their home for a long time and have seen its value increase significantly, but whose income has not changed in the same way.

The Scottish Government’s wider Future of Council Tax in Scotland consultation explored these questions, and examined various options including:

• phased or transitional arrangements to limit year-on-year increases in liability;
• deferral schemes allowing households to defer payment until a triggering event such as sale or transfer of the property; and
• the extension or adaptation of the Council Tax Reduction scheme to provide additional support to those facing increased liability.

These options are set out in detail in Section 4 of the Future of Council Tax in Scotland consultation paper.^[16]

This consultation does not seek further views on those options. Any decisions on whether to introduce such protections alongside the new high-value bands will be informed by the responses and conclusions from that wider work.