Meeting of the Parliament 17 May 2018
I am pleased to open this stage 3 debate on the Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill. I thank the Finance and Constitution Committee for its detailed scrutiny of the bill and the members of the Scottish Parliament who set out their views during the stage 1 debate in March. Members are now familiar with the background to the bill and its intent to give retrospective effect to amendments that were made by the Land and Buildings Transaction Tax (Additional Amount-Second Homes Main Residence Relief) (Scotland) Order 2017.
The Scottish Government’s approach to taxation is founded on, among other things, effective engagement and partnership with stakeholders. As a consequence of that engagement and a willingness to listen to the concerns of taxpayers and their representatives, we have introduced the bill. It addresses an unintended consequence in regard to the treatment of married couples, spouses and cohabitants under the additional dwelling supplement—ADS—and will deliver equity of treatment regardless of the date when joint buyers bought a home. Therefore, it is deliberately narrow in focus and scope, in that it serves only to give retrospective effect to the provisions of the 2017 order.
Members will remember that we had a notably consensual debate at stage 1 and that the Parliament has, so far, provided unanimous support for the bill. Unusually for a bill, no stage 3 amendments have been lodged in advance of the debate. Indeed, no amendments were lodged at stage 2 either. That reflects the narrow and specific scope of the bill. Therefore, I will focus my remarks on the recommendations that are set out in the Finance and Constitution Committee’s stage 1 report.
The committee’s first recommendation invited the Scottish Government to provide annual updates on the numbers of repayment claims made and the amounts repaid. I understand that Revenue Scotland has confirmed that it intends to publish figures on repayments as a result of the implementation of the bill and following the first year of its operation. That will be dependent on the information that is provided by taxpayers and agents and will be subject to Revenue Scotland’s existing policy on statistical publications.
The committee’s second recommendation was addressed principally to Revenue Scotland and invited it to consider further what steps it could take to identify taxpayers who might be eligible to claim a repayment of tax as a result of the bill. The chief executive of Revenue Scotland has written to the convener of the committee setting out that, although, as the committee noted, eligible taxpayers cannot be identified directly, Revenue Scotland has been taking, and continues to take, steps to raise awareness among taxpayers and agents using a wide range of communications activity.
The committee also invited the Scottish Government to confirm what steps it intends to take in response to the issues raised in the written evidence that were outwith the scope of the bill. A number of suggestions highlighted additional asks on the application of the additional dwelling supplement. I do not have any plans to introduce further changes to the supplement at this time, but I have noted the concerns that have been raised and will give them detailed consideration.
On the other asks, I am pleased to say that, following consideration of consultation responses, the Scottish Government today introduced legislation to Parliament to address the concerns that were raised on the application of group relief in a specific scenario and to provide for first-time buyer relief from the land and buildings transaction tax. As members might be aware, I have also launched a consultation seeking evidence to support our consideration of stakeholder asks that relate to property investment reliefs. Other issues will be considered as part of the Scottish Government’s overall approach to devolved tax management and planning.
Building on the budget process review group’s report, I am, of course, committed to working with the Parliament to consider the points that have been raised on the case for developing a new approach to technical tax legislation, such as the changes that are addressed in this bill. However, the focus of the debate is on the bill and ensuring that all the affected couples can reclaim repayment of the supplement where they have genuinely replaced their main residence. The number of affected couples might be relatively small, but I am clear that the resolution of the issue is a matter of great importance for each and every one of them.
I welcome the Parliament’s unanimous support and members’ constructive engagement on their cases and in the progress of the bill, which I am sure will continue this afternoon.
I move,
That the Parliament agrees that the Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill be passed.
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