Property Tax Rates To Be Reviewed

Deputy First Minister John Swinney has said he is to consider reviewing the residential tax rates for the Land and Buildings Transaction Tax (LBTT).

The LBTT is due to replace the UK Stamp Duty Land Tax from April 2015.

In a statement, Mr Swinney confirmed he would review the rates as part of the Scottish Budget Bill process which is due to begin on 21 January. Existing Scottish Government plans would see tax removed from 5,000 purchases between £125,000 and £135,000, as well as ensuring that more than 80% of house purchasers in Scotland are better off, than under the new UK regime.

However, following a one-year agreement with the Chief Secretary to the Treasury – setting the adjustment to Scotland's block grant that will take place as a result of the Scottish Government taking responsibility for raising a small amount of revenues at £494m – Mr Swinney has said that he will review the tax rates to consider whether they could benefit even more house purchasers in Scotland.


He commented: "At the time of the UK Chancellor's Autumn statement I said his imitation of my Scottish tax plans was the sincerest form of flattery. On the first occasion I've had to design a tax system for Scotland, the UK Government copied it instantaneously and applied it across the UK.

"At the time of my proposals – designed for the Scottish market not London house prices – 90% of homebuyers would have been better or no worse off, and 5,000 homes would be taken out of taxation all together, helping those at the lower end of the market.

"The Chancellor's decision to introduce a new Stamp Duty system overnight, without warning and consultation, means that while 80% of homeowners continue to pay less tax or no tax at all under the Scottish system we now have the opportunity to review the rates and ensure they are right for Scotland."

(JP/IT)