Scotland continues to take an independent line when it comes to property taxes.

In a move that’s even more draconian than the England mansion tax proposal, the Scottish Government is to spend £5m on a “targeted revaluation” of certain properties.

This is to create two new council tax bands targeting houses worth more than £1m.

This will be done by reassessing properties in the top two bands – G and H – and then turning those two bands into four.

There were 391 properties sold for more than £1m in 2024-25 with over half in Edinburgh.

David Alexander, the chief executive officer of the DJ Alexander lettings agency. comments: “The issue will be over who values the properties and, given the relatively low number in Scotland, whether this is really about revenue raising or political point scoring.”

The Scottish Government didn’t rule out a future rise in income tax on landlords as recently announced for England. 

Scottish Association of Landlords chief executive, John Blackwood, says: “Scotland’s landlords will be disappointed by this budget.

“In particular by the Finance Secretary’s refusal to rule out the 2p increase on income tax. 

“That this tax may come into effect in 2027-28, subject to a legislative consent motion, will cause further uncertainty within Scotland’s private rented sector.”

Income tax is also changing in Scotland, where those earning under about £30,000 pay slightly less tax than elsewhere in the UK.

People earning more, face progressively higher taxation.

People will pay the 19% starter rate earlier while the basic (20%) rate, which currently starts at £15,398, will go up by 7.4% to £16,537.

The intermediate rate (21%), which currently starts at £27,492, will also go up by the same amount to £29,527.

The higher tax rate (42%) will continue to kick in at £43,663.