Land and Buildings Transaction Tax (LBTT) increases from 4% to 6% on additional properties
From today, 16 December, the Scottish Government has raised the Land and Buildings Transaction Tax (LBTT) from 4% to 6% on additional properties with the aim of raising £34 million and provide opportunities for first-time buyers.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, commented
“Our Propertymark members in Scotland already tell us of the plummeting desire for landlords to remain in the sector with 68 per cent of letting agents reporting an increase in notices to sell due to ongoing legislative changes. Therefore, it is disappointing to see the blatant disregard for the importance of incentivising investment in the private rented sector by raising the Additional Dwelling Supplement from four per cent to six per cent for additional homes.
The private rented sector is a key solution to resolve the housing crisis but if the Scottish Government continue with policies that disincentive landlords this will only make the situation worse.”
For more information on the Additional Dwelling Supplement in Scotland click here.