'Mansion tax' could double rates on Scotland's most expensive homes

Existing council tax bands are based on 1991 valuations of homes.

There is cross-party agreement that the outdated system should be reformed, but no consensus as to how that should be done.

The Scottish government consulted on reforms during the last parliament, but as of yet no firm plans have emerged.

It said any changes will be made "as part of cross-party discussions with local government".

Announcing the consultations, Deputy First Minister Jenny Gilruth said: "Our approach to tax is based on fairness – asking the wealthiest among us to contribute a bit more.

"As it stands, some multi-million pound properties have council tax bills that are not materially different from those faced by people living in far more modest homes."

The UK government has also announced plans for a "mansion tax" on properties in England valued at more than £2m.

Green MSP Lorna Slater described the launch of the consultation as an "important milestone".

She said: "The mansion tax will raise vital funds for schools, libraries and other local services, while helping to respond to Scotland's housing emergency."

However, Scottish Conservative finance spokesperson Craig Hoy said the mansion tax could put people off buying in Scotland.

He added: "In targeting a small minority of properties, the revenues these new bands would bring in won't touch the sides, and that's before the administrative costs are factored in."