Every home in Scotland would face a £1,600 bill under Reform’s plans for an Annual Property Tax, new research shows.
In their manifesto published on Thursday, Reform say that they would gradually phase out both the Land and Buildings Transaction Tax (LBTT) and business rates, replacing them with a “revenue neutral” annual tax on every property in Scotland.
Analysis by the Scottish Conservatives shows that in order to cover the lost revenue, Lord Offord’s party would need to slap an average bill of £1,608 on every home – as well as business – in the country.
The “eye-watering” annual property tax would be in addition to council tax bills.
Shadow finance secretary Craig Hoy said the proposals would hammer hard-pressed Scottish households, and demonstrated that Reform’s policies were “rash, half-baked and potentially devastating”.
Scottish Conservative shadow finance secretary Craig Hoy said: “Reform’s property tax bombshell would hammer Scottish households at a time when their finances are already being squeezed by the high taxes imposed by Labour and the SNP.
“Handing every homeowner a £1,600 bill, on top of their council tax, would be madness. This proposal demonstrates how rash, half-baked and potentially devastating Reform’s manifesto is.
“It may sound like a trifling sum to multi-millionaire Lord Offord but it would be truly eye-watering for ordinary Scots.
“It’s not just Scotland’s place in the Union that Reform would risk – it’s household finances too.
“In contrast, the Scottish Conservatives have credible plans to cut taxes – including LBTT – by reining in Scotland’s out-of-control benefits bill. That’s why voters should back us on their peach ballot to stop an SNP majority.”
Notes to editors
The Scottish Conservatives would abolish Land and Buildings Transaction Tax (LBTT) in Scotland on primary residences. Housing is expensive enough without the SNP Government imposing taxes on property transfers. Following on from Kemi Badenoch’s announcement that a Conservative UK Government would abolish stamp duty in England, a Scottish Conservative government would abolish LBTT in Scotland to help bring down the cost of purchasing a home.
Reform are proposing a £1,608 tax on every property in Scotland. Reform's manifesto states: 'Both LBTT and business rates will begin to be gradually phased out in a revenue neutral way over the course of 10 years, rolling them up into a single, fairer, and more predictable Annual Property Tax.' LBTT and non-domestic rates are expected to raise a total of £4.5 billion in 2026-27. Therefore, if this revenue were to be replaced with an annual property tax, it would equate to a £1,608 tax if it were levied on all properties in Scotland, including commercial properties. (Reform Manifesto, 19 March 2026; Scotland's Economic and Fiscal Forecasts, 11 February 2026, link; Non-domestic rates relief statistics 2025, 26 November 2025, link; Households and dwellings in Scotland 2024, 26 June 2025, link).
Calculations:
LBTT is set to raise £1.049 billion in 2026-27. Non-domestic rates will raise £3.474 billion in the same year.
Therefore, the combined revenue of these taxes, which are levied on all properties (commercial and residential) in Scotland, is £4.523 billion.
Reform are suggesting replacing this with a ‘revenue-neutral’ annual property tax that would be levied on commercial and residential properties.
There are 259,650 properties on the non-domestic rates valuation roll and 2.552,400 occupied households in Scotland according to the latest statistics, meaning 2,812,050 would be subject to the tax.
£4.523 billion/2,812,050 means the average household and business would be subject to a £1,608 bill.