Land and property taxes are an important part of Scotland’s public finances, contributing £7.1 billion in 2024-25. At the same time, changes in technology and the way public sector data is used create opportunities to make the system more efficient, joined-up and responsive to future public needs.

The Commission’s route-map proposes a phased programme of improvements over the next five years, with benefits delivered along the way rather than dependent on wholesale reform.

It focuses on four areas:

• Making better use of land data for tax decisions, including more complete and up-to-date information on land ownership, use and value.
• Improving land and property valuation, making it easier to value land and property regularly and use that information alongside other land data.
• Building a more joined-up system for delivery, with better coordination, digital infrastructure and a user-focused approach.
• Innovating and testing opportunities, so potential tax reforms can be modelled and tested before wider implementation.

The Commission has previously recommended reforms that would tax land value more effectively and learn from international practice. Given that all these options require practical steps to make reforms deliverable, the route-map sets out the practical foundations that would give Scottish Ministers greater flexibility to consider how tax could support priorities including economic development, land reform, town centre regeneration and reducing emissions from land.

Kathie Pollard, head of policy at the Scottish Land Commission, said: “Scotland has an opportunity to build a more modern approach to land and property tax administration, making better use of the data, technology and expertise we already have.

“Tax can be an important tool in supporting wider policy objectives, but any future reforms need good information, effective valuation and systems capable of delivering them.

“This route-map is about putting those foundations in place. It sets out practical improvements that can deliver benefits from the outset, while building towards a system that gives future governments more options.

“This is a long-term programme, but it doesn’t mean waiting five years to see results. Better use of land data, closer collaboration across the public sector and testing new approaches can all improve decision-making as we go.”

The route-map builds on several years of Scottish Land Commission research and advice on land and taxation, including work on land valuation, land information systems, land value taxation, the re-introducing business rates for shooting and deer forests and the potential role of tax in supporting the reuse of long-term derelict land.

That work has consistently highlighted the importance of complete, up-to-date information about land ownership, use and value, alongside a joined-up approach to tax policy and administration.

The route-map also recommends exploring opportunities to improve land valuation, identifying digital transformation and resource needs, and working on the ground with local authorities to test how targeted tax approaches could support the reuse of derelict land.