Reimagining Wealth Taxes
Most tax revenues in Scotland come from taxes on income earned by workers, while land and other assets often go undertaxed.
Scotland is a wealthy country, but much of this wealth is concentrated in the hands of a small elite. A powerful example is that an estimated 67% of Scotland’s private rural land is owned by just 0.025% of the population.
Meanwhile, most tax revenues in Scotland come from taxes on income earned by workers, while land and other assets often go undertaxed.
Wealth taxes can:
Unlock untapped potential
Taxing land and property more effectively means that Scotland’s wealth works for everyone, funding vital public services like healthcare, education, and public transport.
Promote fairness
Ensuring that taxes are based on different types of wealth, not just income, helps reduce economic inequalities, create a more just society, and build a more prosperous economy.
Replacing Council Tax: A Key Part of the Solution
Council Tax is outdated and unfair. Properties in Scotland haven’t been revalued since 1991, meaning many people are paying taxes based on property values that are no longer accurate. This system disproportionately impacts lower-income households, while wealthier homeowners benefit from under-assessed property values.
We’re calling for a comprehensive property revaluation as the first step towards replacing Council Tax with a fairer system, such as a Land Value Tax, a percentage-of-value property tax or Land Tax. This would ensure that property taxes better reflect current market values, and that those with the most wealth contribute more to funding essential services.
Why Property Revaluation Matters
Property values have changed dramatically since 1991, creating significant inequities in how Council Tax is applied.
Revaluing properties will make tax assessments fairer and more accurate, ensuring that wealthier homeowners pay their fair share.
Towards a fairer Scotland
At Tax Justice Scotland, we’re calling for:
- An immediate property revaluation as a stepping stone to modernising Council Tax.
- Replacing the outdated system with a more progressive one. Options include a property tax, Land Tax or Land Value Tax.
- Concrete plans for new wealth taxes at national and/or local levels to reduce inequality and ensure Scotland’s wealth is shared more equitably.
By reforming wealth taxes, we can build a more equitable Scotland where prosperity is shared for the benefit everyone, not just a privileged few.