Draft legislation for second home council tax premium in Scotland

The Scottish Government has revealed draft legislation allowing local authorities to charge up to double the full rate of Council Tax on second homes.

The draft regulations have been laid before parliament and aim to prioritise homes to live in.

If approved, the regulations would mean that local authorities could apply the Council Tax premium on homes that are not used as a main residence.

The change received majority support in a joint consultation with the Convention of Scottish Local Authorities (COSLA).

The legislation would bring second homes into line with long-term empty homes from 1 April 2024.

Public Finance Minister Tom Arthur said: “We want everyone in Scotland to have a home that meets their needs. We know second homes can sometimes benefit local communities, but they can also restrict the availability of housing and increase costs for people who want to rent or buy.

“Subject to approval by Parliament, this legislation aims to prioritise housing for living in by allowing local authorities to charge a Council Tax premium on second homes. Backed by a majority of respondents to our joint consultation with COSLA, it will enable councils to seek a fair contribution towards local services from second-home owners.”

COSLA Resources Spokesperson Councillor Katie Hagmann said: “Subject to Parliamentary approval, COSLA very much welcomes the ability for councils to take the decision to increase the premium on second homes in their areas. Allowing the politicians who are closest to their communities to take decisions about what best suits local needs and circumstances is well aligned to the Verity House Agreement.”