How will the ‘Mansion Tax’ affect Scotland?

By Carl Warden, Head of Estate Agency

The recent UK Autumn Budget, delivered by Chancellor Rachel Reeves, introduced several notable changes, though their direct impact on Scotland remains unclear.

Despite weeks of speculation, the Chancellor’s statement confirmed that Stamp Duty and local housing allowance rates in England will remain frozen. However, the Budget did advance plans for a ‘Mansion Tax’ on properties valued above £2,000,000, alongside increases in property income tax and the national minimum wage.

Attention now turns to the Scottish Budget, due on 13 January 2026, which should provide greater clarity. While it may seem that the Mansion Tax will not apply north of the border, history suggests the Scottish Government could introduce its own version with different thresholds, reflecting Scotland’s distinct property market. For instance, property values vary significantly between jurisdictions, making the choice of threshold critical.

Current research indicates fewer than 1,000 properties in Scotland exceed £2,000,000 in value. However, if the threshold were lowered to £1,000,000, approximately 11,500 properties would fall within scope. With a minimum surcharge of £2,500 per annum, this could generate an estimated £28.3 million in additional revenue.

In summary, while the UK Autumn Budget sets the tone for fiscal policy, Scotland’s property market faces its own uncertainties.

The forthcoming Scottish Budget will be pivotal in shaping the landscape for homeowners and investors alike. Whether through a Mansion Tax or other measures, any changes could have far-reaching implications for property values, investment strategies, and overall market confidence.

For now, the sector remains in a holding pattern, awaiting decisions that could redefine the cost of owning high-value homes in Scotland.

For help with your next move in Scotland contact Carl Warden on carl.warden@bellingram.co.uk or 01738 621 121.