Part of: UK Council Tax 2026 — Complete Guide → Council Tax Scotland 2026 — Scottish Bands, Multipliers, and Rules
TL;DR: Scottish councils can charge up to a 100% premium on second homes under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013. Highland Council, Argyll and Bute, and several other Scottish councils with significant second-home concentrations have adopted the full 100% premium. Scotland's holiday-let threshold (140 days available/70 days let since 2022) determines whether a property is on Council Tax or business rates.
Last reviewed: 27 April 2026
The Legal Framework for Scottish Second-Home Council Tax
Scottish second-home Council Tax operates under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013. These Regulations give Scottish councils the discretion to charge higher rates on:
- Second homes (properties that are furnished and not a person's sole or main residence)
- Long-term empty properties (typically over 12 months vacant)
Unlike the English Levelling-up and Regeneration Act 2023 approach (which set a national trigger but required council adoption), the 2013 Scottish Regulations gave councils earlier and broader flexibility - Scotland has had these powers since 2013, predating the English 2023 regime.
The Local Government Finance (Scotland) Act 1992 provides the overarching framework for Council Tax in Scotland.
Premium Levels Across Scottish Councils
Scottish councils have discretion to set premiums between 0% and 100% for second homes, and between 0% and 200% for long-term empty properties. Adoption varies by council based on local housing market conditions:
100% second-home premium (council charges double the standard rate):
- Highland Council: adopted the full 100% premium, reflecting significant second-home concentrations in tourism areas such as Loch Ness, Skye, and other Highlands destinations.
- Argyll and Bute: adopted 100% premium, covering areas such as the Kintyre peninsula, Mull, Islay, and other island and coastal locations popular for second homes.
- Several other rural Scottish councils with significant tourism economies.
Lower or no premium:
- City of Glasgow: minimal second-home stock in the traditional sense; no premium adopted.
- City of Edinburgh: some second-home stock, particularly in popular tourist areas; adopted a lower premium rather than the full 100%.
The rationale: Areas where second homes represent a significant proportion of housing stock face specific housing affordability problems for local residents. High second-home concentrations reduce the supply of year-round housing, pushing up prices and rents for workers and families who need permanent homes. The premium is intended to discourage second-home ownership or compensate the community for the housing market effects.
The Policy Context: Scottish Housing Affordability
The Scottish Government has been actively concerned about housing affordability in Highland and Island areas. The second-home premium is one element of a broader policy response that also includes:
- The Additional Dwelling Supplement (ADS) in Land and Buildings Transaction Tax (LBTT), which adds 6% to the LBTT on second property purchases in Scotland (as of 2024-25 rates; subject to change)
- Scottish planning policy that favours affordable housing in areas with second-home pressure
- Investment in affordable housing construction in rural communities
COSLA (Convention of Scottish Local Authorities) has supported councils' use of the premium powers as a legitimate tool for managing housing market impacts.
Scotland's Holiday-Let Business Rates Threshold
Properties in Scotland used as holiday lets may qualify for business rates rather than Council Tax, removing them from the second-home premium regime. The threshold since 2022 requires:
- The property must be available for short-term let for at least 140 days per calendar year, AND
- The property must be actually let for at least 70 days per calendar year
If both conditions are met, the property is assessed as self-catering accommodation for business rates purposes, not as a dwelling for Council Tax purposes. Small properties meeting the threshold typically qualify for Small Business Bonus Scheme relief in Scotland, potentially making them rates-free.
This 140/70 threshold mirrors the English threshold introduced by the Non-Domestic Rating Act 2023, creating broad consistency across the UK's holiday-let classification rules.
Furnished vs Unfurnished Empty Properties
Scottish councils distinguish between:
Second homes (furnished, for owner's personal use): A property furnished for the owner's occasional residential use, not their main home. Subject to the second-home premium (up to 100%) in adopting councils.
Long-term empty (unfurnished or unused for extended periods): Subject to the long-term empty premium (up to 200% in adopting councils after the relevant vacancy period). The vacancy period and premium level vary by council.
The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 define the classifications. Councils apply their adopted premium policies through their Council Tax support scheme documentation.
Declaring a Scottish Second Home
If you own a property in Scotland that is not your sole or main residence, you should notify the billing council (the Scottish council for the area where the property is located):
1. Contact the council online, by phone, or in writing.
2. Explain that the property is a second home (not your main residence), is furnished, and is available for your personal use.
3. Provide your main residence address.
4. The council will apply the second-home classification and the applicable premium rate.
Failure to declare accurately can result in incorrect billing and potential civil penalties.
Exemptions from the Scottish Second-Home Premium
Certain properties may be exempt from the second-home premium or classified differently:
Job-related second home: Where a property is genuinely occupied as a place of work residence rather than a personal second home (for example, a property required for employment that involves working away from the family home), some councils may classify it differently. Discuss with the billing council.
Properties marketed for sale: A property actively on the market for sale may be treated as an empty property in transition rather than a second home. Scottish councils have discretion here.
Properties undergoing major renovation: If a property requires substantial renovation before it can be used, Class A equivalent provisions under Scottish Council Tax regulations may apply.
Holiday lets meeting the 140/70 threshold: Properties that qualify for business rates under the self-catering threshold are off the Council Tax list entirely.
The Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement
Alongside Council Tax, buyers of Scottish second homes face the Additional Dwelling Supplement (ADS) in Land and Buildings Transaction Tax. The ADS applies to purchases of additional residential properties in Scotland.
For 2024-25 onwards, the ADS rate is 6% of the total purchase price (applied to the full price, not just the slice above a threshold). This means a £200,000 Scottish second home incurs an ADS of £12,000 on top of any standard LBTT.
The ADS and the Council Tax second-home premium are separate fiscal tools but serve related policy purposes: both seek to moderate second-home ownership by increasing the ongoing and upfront costs. The combined effect is a significant financial signal against speculative or holiday second-home ownership in Scotland.
ADS relief: First-time buyers purchasing a first home are not liable for the ADS. A buyer who intends to replace their main residence (and is temporarily owning two properties while in the transaction process) may be eligible for a refund of the ADS if the sale of their previous main home completes within 36 months of the new purchase.
Scottish Housing Policy Context: Second Homes as a Political Issue
The housing affordability crisis in Scottish Highland and Island communities has been a significant political topic. Concerns include:
- Young people unable to afford homes in the communities they grew up in
- Local services (schools, health centres, post offices) under threat as year-round population declines while holiday homes sit empty for most of the year
- Workers (nurses, teachers, social care staff) unable to find affordable housing near their workplaces
The Council Tax second-home premium and the ADS are two fiscal responses to these concerns. The Scottish Government has also invested in affordable housing construction in rural areas and has encouraged councils to develop "rural housing strategies."
COSLA's published analysis acknowledges that the second-home premium alone will not resolve the structural housing supply problems in affected communities, but it represents one available tool in the broader housing policy toolkit.
The Cross-Border Dimension: English and Welsh Owners of Scottish Second Homes
A significant proportion of Scottish second-home owners are residents of England or Wales. The Scottish second-home premium affects these cross-border owners in the same way as Scottish residents:
- Council Tax liability for the Scottish property is determined by Scottish law (specifically the 2013 Regulations).
- The premium applies regardless of whether the owner's main home is in England, Wales, or Scotland.
- Billing and collection is managed by the Scottish billing council.
- Appeals go through the Scottish Council Tax system (Local Valuation Appeals Committee for band issues; Scottish Council Tax Reduction Review Panel for CTR-related issues).
Cross-border owners should check whether the Scottish council for their property's area has adopted the second-home premium and at what level.
Frequently Asked Questions
I own a holiday cottage in Highland - how much more Council Tax will I pay?
In Highland Council's area with the 100% second-home premium, you pay double the standard Council Tax. If the property's standard charge (based on band and Band D rate) is £1,400/year, the premium brings it to £2,800/year. To avoid the premium, either convert the property to a qualifying holiday let (140/70 threshold), establish it as your main residence, or accept the premium as an ongoing cost.
My Scottish cottage is not let to anyone and just sits empty for most of the year - is it a second home or long-term empty?
If the property is furnished and you use it personally (even occasionally), it is typically classified as a second home. If it is unfurnished and not used by anyone, it may be classified as long-term empty. The classifications matter because they determine which premium regime applies. Contact the billing council to clarify the classification for your specific situation.
I'm buying a holiday property in Argyll - when does the second-home premium start?
The second-home premium applies from the date the property is classified as your second home. This is typically from your completion date, when you become the owner and your main residence is elsewhere. Register with the billing council from completion and the premium will be applied based on the adopted policy.
Can I switch between holiday-let (business rates) and second home (Council Tax) status each year?
No - this is not permitted. The holiday-let vs Council Tax classification is based on the property's actual use pattern (the 140/70 threshold) over a full year. You cannot selectively apply whichever regime is cheaper. If you consistently meet the 140/70 threshold, the property should be on business rates. If you do not meet it, it is on Council Tax.
I've heard Scotland might further tighten second-home rules - should I wait before buying?
The Scottish Government has been generally supportive of strengthening housing market interventions affecting second homes - the ADS has increased, council premium powers have been extended, and the holiday-let threshold has been tightened since 2022. Any further changes would require legislation or further regulation, which takes time to develop and implement. Properties purchased and held will be subject to whatever rules apply at the time of the purchase and at each subsequent year. Decision-making based on regulatory speculation about what future governments might do is inherently uncertain and should not substitute for financial and legal advice about the current regime.
How we verified this
The second-home premium powers are from the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013. The Local Government Finance (Scotland) Act 1992 provides the overarching Council Tax framework. The 140/70 holiday-let threshold for business rates is from the Valuation (Long-Term Empty Houses and Houses Occupied Periodically) (Scotland) Order 2022 and related legislation. COSLA publishes analysis of Scottish council premium adoption. The Scottish Government publishes policy documents on housing and second homes. IFG has published analysis on Scottish housing policy tools.
Sources & Verification
- Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013: https://www.legislation.gov.uk/ssi/2013/12/contents
- Local Government Finance (Scotland) Act 1992: https://www.legislation.gov.uk/ukpga/1992/14/contents
- Scottish Government housing policy: https://www.gov.scot/policies/housing/
- COSLA (Convention of Scottish Local Authorities): https://www.cosla.gov.uk/
- Scottish Assessors Association: https://www.saa.gov.uk/council-tax/
- IFG (Institute for Government) housing analysis: https://www.instituteforgovernment.org.uk/
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
