Consultation on Scottish Council Tax high-value property bands (Mansion Tax)

The ATT has responded to the Scottish Government's consultation on Council Tax high-value property bands (Mansion Tax).

In our response we emphasised that any change to the current banding system should be simple to understand and linked to ability to pay. A system that is based entirely on property values does not consider households which are asset rich put cash poor, including retired homeowners and those whose property has increased substantially in value due to market conditions, without a corresponding increase in disposable income. 

We raised concerns that there may not be sufficient time for the Scottish Assessors to carry out the valuations required, and for appeals to be dealt with timeously before the proposed implementation date of 1 April 2028. We also have concerns that some properties which have undergone significant redevelopment will fall through the net, especially where there has not been a subsequent sale or transfer of the property.

Other concerns raised included the impact of cliff-edge increases between banding, and the concentration of high-value properties in certain areas of Scotland, leading to some councils benefiting more than others.

Finally we referred to our response to the Scottish Government’s consultation on the future of Council Tax in Scotland, where we encouraged consideration of alternative methods of raising funds for local government that were equitable and linked to ability to pay.