Britain warned it’s next after 300% Council Tax lands

Second homeowners across Britain could face a 300% Council Tax premium after Edinburgh confirmed the charge, a leading agent has warned.

Councillors approved the increase at a full council meeting on Thursday, meaning owners of second homes in the Scottish capital will pay four times the standard rate.

The rest of Britain could follow and impose the hefty Council Tax charge, warns Trevor Abrahmsohn (pictured), founder of Glentree International.

I’m not sure whether it needs such a draconian increase of 300%, although the rest of Britain could well follow Edinburgh’s move.”

The decision to introduce the 300% Council Tax surcharge in Edinburgh ends months of uncertainty.

The rise had originally been due to take effect on 1st April this year but had been suspended after only eight days following legal advice.

At that time, affected owners were issued with revised bills at the previous 100% premium.

It means some second homeowners in Edinburgh will face a council tax charge of almost £16,000 a year, based on the standard 2026 to 2027 Band H rate of £3,983.82.

The council estimates that the higher rate will raise around £4million a year, which will be used to support affordably housing provision in the city.

Council Tax premiums

Councils in England have been able to charge an additional 100% premium on second homes since April last year.

Meanwhile, Welsh local authorities have been already able to impose premiums of up to 300%.

Abrahmsohn goes on to question whether a rise of that scale is justified given the taxes second homeowners already face.

He says: “Second homes in Britain already carry quite a stiff Stamp Duty surcharge. I’m not sure whether it needs such a draconian increase of 300%, although it could well follow Edinburgh’s move.”

He adds: “If it is imposed and a Mansion Tax is also introduced, the aggregate effect of these taxes would be punitive and unfair.”

The Mansion Tax has already prompted warnings from the luxury homes market, with reports suggesting homeowners could face fines for refusing property inspections.