Information on Council Tax valuation an discounts: FOI release

Information requested

1. Is there a consideration to review the Council Tax valuation to account for the current market value of properties and property size?
2. What measures is Aberdeen City Council planning to take to review the automatic discount for single residents, especially for those with high incomes or expensive properties?
3. Is there consideration to introduce a discount system based on residents' income and property value?
4. What criteria should be established for granting discounts to avoid providing them to individuals with high incomes or expensive properties?
5. Is there a plan to prohibit debt write-offs for high-income individuals if their debts exceed a certain amount?
6. Are there plans to provide social assistance instead of discounts for individuals with low incomes or social needs?

Response

The Scottish Government seeks to provide requested information whenever possible.

I can confirm that the Scottish Government does not hold specific documents that answer the specific queries you have raised in the terms of your request.

Under section 17(1) of the Freedom of Information (Scotland) Act 2002, a public authority must notify a requester if it does not hold the information.

In some instances, the information you are seeking in some of your queries may be held by others, such as Aberdeen City Council. I understand you have made a direct request to them.

However, I have provided a substantive responses below to address the points you raised, based on the information available.

1. Is there a consideration to review the Council Tax valuation to account for the current market value of properties and property size?

The framework of the Council Tax system in Scotland applies nationally and is decided by the Scottish Government and Scottish Parliament. Therefore, it is not within the remit of individual local authorities or local Assessors, such as Aberdeen City Council or Grampian Valuation Joint Board, to independently instigate a review of property valuation principles, including updating property valuations to reflect current market values or property sizes.

Under the present Council Tax system each domestic property is allocated into one of eight different Council Tax valuation bands. These are based on the amount which it might reasonably have been expected to realise in the open market if sold on 1 April 1991, given certain statutory assumptions (for example, that the property is in a reasonable state of repair and sold with vacant possession). Valuation of all properties against this fixed date allows the values of individual properties to be estimated relative to others in the local area on a consistent basis.

In practice, responsibility for the allocation of properties to valuation bands rests with the relevant local Scottish Assessor. There are 14 local Assessors in Scotland, each responsible for Council Tax banding in one or more local authority areas. The Local Government Finance Act 1992 and associated legislation require each Assessor to maintain the Council Tax valuation list (a ledger of domestic properties potentially chargeable for Council Tax) for properties in its area.

Reform of the Council Tax system to amend the basis of valuation requires the introduction of national legislation by the Scottish Government and Scottish Parliament. In recent years the Council Tax reform debate has been characterised by agreement on the need for reform, but with differing and competing views on what that reform should look like. Therefore, before any reform to the Council Tax system can be implemented, it is first necessary to form consensus on what a new system would look like.

This year, the Scottish Government is undertaking an engagement programme aimed at building that consensus for Council Tax reform. The Scottish Government has announced a joint programme of engagement with the Convention of Scottish Local Authorities (COSLA) to make Council Tax fairer. This includes an initial stage of independent analysis to assess market trends, model potential reforms, and provide an evidence base for discussion. The engagement programme will include a formal public consultation, town hall events across Scotland, and focused discussions with experts and key stakeholders.

This work does not itself constitute a review of property values for Council Tax purposes but will support informed public discussions, leading to a Scottish Parliament debate in early 2026, to guide the next parliament on the next stage of reform.

2. What measures is Aberdeen City Council planning to take to review the automatic discount for single residents, especially for those with high incomes or expensive properties?

As previously stated, the framework of the Council Tax system, including the Council Tax Single Person Discount, is set nationally by the Scottish Government and Scottish Parliament. It is not within the remit of individual local authorities such as Aberdeen City Council to independently review or change the legislative principles underpinning the Single Person Discount.

The Council Tax Single Person Discount provides a 25% reduction in Council Tax liability for properties where a single adult has their sole or main residence. Certain classes of adult residents - such as students, care leavers, or those with a significant cognitive impairment - can be disregarded for discount purposes. If a property is occupied solely by one disregarded person, or if all adult residents are disregarded, a 50% discount applies. These criteria are set out in national legislation and apply uniformly across Scotland.

While Aberdeen City Council cannot alter the rules or introduce income or property value thresholds for the Single Person Discount, it may routinely review discount entitlements to ensure only those eligible receive them.

3. Is there consideration to introduce a discount system based on residents' income and property value?

Scotland already has a national means-tested Council Tax Reduction (CTR) scheme to help households on low incomes pay their Council Tax liability. The CTR scheme was established by the Scottish Government in 2013 to replace Council Tax Benefit, which had previously applied across Great Britain. Under this scheme, eligible households receive a reduction in the amount of Council Tax they are liable to pay. This reduction can be any proportion of the liability, up to and including 100 per cent, meaning some households are not required to pay any Council Tax at all.

Entitlement to CTR is determined by a range of criteria. These include the applicant’s household income and sources of income, the amount of capital (such as savings and investments) they hold, their employment status, and their age.

Although Council Tax is a local tax, the CTR scheme is set out nationally in legislation by the Scottish Government and is funded by the Scottish Government to local government through the General Revenue Grant. The legislation underpinning CTR is regularly updated and maintained to ensure the scheme remains effective and its policy intent is maintained.

Fundamentally, the Council Tax Reduction scheme exists to ensure that nobody in Scotland should have to meet a Council Tax liability they cannot be expected to afford. Over 460,000 households receive some level of CTR, with recipients saving over £850 a year on average. Over 380,000 households receive full CTR and therefore do not have to pay any Council Tax.

The Scottish Government promotes take-up of the CTR scheme, including through Citizens Advice Scotland’s Money Talk Team service, which offers free, confidential, and holistic advice on debt, benefit take-up, and Council Tax Reduction.

4. What criteria should be established for granting discounts to avoid providing them to individuals with high incomes or expensive properties?

The criteria for granting Council Tax discounts are determined at a national level by the Scottish Government and Scottish Parliament. Individual local authorities, such as Aberdeen City Council, do not have the power to independently establish or alter these criteria, as the Council Tax system is governed by national legislation.

Currently, Council Tax discounts—such as entitlement to the Council Tax Single Person Discount—are based primarily on household composition or specific circumstances, such as student status or severe mental impairment, rather than on income or property value. While the Council Tax Reduction (CTR) scheme provides means-tested support for low-income households, Council Tax discounts are not presently restricted based on the resident’s income or the value of the property.

5. Is there a plan to prohibit debt write-offs for high-income individuals if their debts exceed a certain amount?

The write-off of Council Tax debt in Scotland is a matter at the discretion of individual local authorities. Each council is responsible for the collection and administration of Council Tax within its area, and decisions regarding the write-off of outstanding debts are typically made only in specific circumstances.

Council Tax collection rates in Scotland are very high, with around 96% of charges collected successfully each year. The Scottish Government works with COSLA to encourage best practice in debt collection and to support local authorities in their efforts. Enhanced advice and support for people struggling with Council Tax arrears is available through initiatives such as the Citizens Advice Scotland project, which is backed by additional Scottish Government funding and works in partnership with councils to promote good practice.

The Joint Working Group on Council Tax Reform has also identified the importance of improving data sharing to aid in debt recovery and to help identify those who may benefit from Council Tax Reduction. However, decisions about writing off Council Tax debt are ultimately made by local authorities based on operational considerations and the practicalities of debt recovery, rather than the income or wealth of the individual concerned.

6. Are there plans to provide social assistance instead of discounts for individuals with low incomes or social needs?

There are currently no plans to replace Council Tax discounts with alternative forms of social assistance for individuals with low incomes or social needs. Scotland already provides targeted support through the Council Tax Reduction (CTR) scheme. The CTR scheme is designed specifically to assist people on low incomes with their Council Tax liability, reducing the amount they need to pay based on their household income, capital, and circumstances. This reduction can cover any proportion of the liability, up to and including 100%, ensuring that those who cannot afford to pay are not required to do so.

In addition to the CTR scheme, a range of other forms of assistance are available. For example, individuals with a severe mental impairment may be eligible for a Council Tax exemption, discount, or exclusion from joint and several liability. Households with a disabled resident may also qualify for a reduction in their Council Tax valuation band if their home has been adapted to meet the needs of the disabled person. In such cases, the household pays the rate for the Council Tax band below that allocated to their property, while homes already in Band A pay a reduced rate. Other Council Tax exemptions and discounts are available for students, care leavers, and certain other groups, and some properties may be exempt from Council Tax altogether under specific conditions.

It is also important to note that, beyond Council Tax support, a wide range of devolved social security benefits are available in Scotland to assist people with low incomes or social needs. These include benefits for families, carers, disabled people, and those facing particular financial hardship. Such support is provided in addition to, and not instead of, Council Tax discounts and reductions.

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