In light of the enhanced council tax on second homes, whether it plans to review any impact of the introduction of this uplift by local aut…

Since 1 April 2024 local authorities have had discretionary powers to apply a Council Tax premium of up to 100% on second homes.Council Tax is a local tax, and it is for individual councils to determine the appropriate balance of housing in their areas based on local needs. The Regulations give Councils greater fiscal empowerment, in the spirit of the Verity House Agreement. They enable Councils the discretion to charge Second Homes anywhere between a 50% discount, and up to a 100% premium. It is for Councils to take decisions about the tax treatment of second homes, including where exclusions may apply.The Scottish Government is committed to monitoring the impact of the premium and will consider their effects as more data becomes available. The first set of data reflecting the implementation of the premium was collected in September 2024. This data indicated a 10% decrease (2,455 properties) in the number of second homes compared to the previous year. This decline may be related to the introduction of the 100% Council Tax premium on second homes. The Scottish Government will continue to monitor the impact of the Council Tax premium.I would also note that the Council Tax system includes exemptions for certain circumstances. This includes an exemption for properties that are difficult to let, which applies specifically to properties that are inherently hard to let due to their physical relationship with another dwelling. Further, there is an exemption for properties that cannot legally be lived in because it is prohibited by law. It is for the local authority to assess whether the conditions are met for these exemptions to apply.