A brief overview of the recent “mansion tax” change in the Scottish Budget and what it means for buyers.
What changed (the “mansion tax”)
Scotland has announced plans to introduce a new “mansion tax” on homes valued at £1 million+, by creating new higher council tax bands for these properties.
- It’s aimed at increasing tax paid by the highest-value homes (to “improve fairness” at the top end).
- It is not an immediate change to LBTT (the Scottish property purchase tax) — it’s a council tax reform for expensive properties.
- The change is expected to start in 2028 (i.e., future implementation).
Implications for homebuyers
Most homebuyers: no direct impact
- If you’re buying below £1m, the “mansion tax” won’t apply, so your costs won’t change because of this measure.
Buyers of £1m+ homes: higher ongoing annual costs
If you buy at/above that level, you may face:
- higher council tax bills each year, not just a one-off purchase tax increase 
- potentially a slightly reduced pool of buyers at the top end (which can affect price negotiation)
Budgeting point: “mansion tax” ≠ LBTT
Homebuyers should still focus on:
- LBTT at purchase, and
- Council tax each year after purchase
This change increases the running cost of owning a £1m+ home rather than the up-front purchase cost.
If you would like to discuss buying or selling a property in Scotland, please contact our Mel McIntyre on m.mcintyre@wright-crawford.co.uk.
