Chamber and committees

The decision to provide local authorities with additional flexibility over the Council Tax treatment of second homes was informed by evidence gathered through the Scottish Government and COSLA's joint consultation in 2023 - Council Tax for second and empty homes, and non-domestic rates thresholds: consultation.

This 2023 consultation included the undertaking of an Island Communities Impact Assessment screening summary which considered the potential effects of the proposal. Its summary recognised that the additional powers would be discretionary and that it would be for local areas to assess the benefits and costs to their communities before deciding whether to introduce higher Council Tax charges for second and/or empty homes. The consultation analysis identified a range of views, reinforcing the importance of local discretion and consideration of local circumstances.

These discretionary powers were subsequently taken forward through the Housing (Scotland) Act 2025, during the parliamentary scrutiny of which accompanying documents, including a Financial Memorandum, considered the potential financial implications of the measures.

Decisions on whether to apply a Council Tax premium, and at what level, are ultimately for individual local authorities taking account of local circumstances, including local housing needs. Local authorities have the power to charge the headline rate of Council Tax, apply a premium, or apply a discount.

The Scottish Government monitors the operation of the national framework through engagement with local authorities and other stakeholders and through information received from local authorities as part of established local government finance returns.

The Scottish Government publishes statistics from the data collected from local authorities, which provides information on the number and location of second homes across Scotland and helps assess trends over time. The most recent statistics from September 2025 on empty properties, unoccupied exemptions and second homes are available at Council Tax - Second Homes and Empty Properties - September 2025.