Hansard

I am pleased to speak in this stage 3 debate on the Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill. I take the opportunity to draw members’ attention to my register of interests, with respect to residential property rental.

The change to the LBTT that we are debating is a small but important change, because it will enable people who, through no fault of their own, have been unfairly penalised through having to pay an additional amount, to redress that situation. It provides for the situation in which a couple who have two houses to sell and who are purchasing a single property could be treated as a single economic unit for the purposes of the additional dwelling supplement for both the sale and the purchase transactions. It is right that that anomaly be corrected, and that steps are now being put in place to ensure that the correction will apply retrospectively. It is good to see consensus across the chamber on that point.

Some other potential anomalies have been identified in the LBTT legislation; I know that the Law Society of Scotland and others have highlighted additional concerns to be considered and, if necessary, addressed. Although the bill has a narrow focus on the additional dwelling relief, I know that other aspects of the LBTT will be considered in due course. I look forward to considering them when they come up for debate in committee and in the chamber.

It is worth taking a minute, at this stage, to review the wider context of the Scottish Government’s changes to the LBTT and their impact. The steps that have been taken by the Scottish Government to focus the LBTT on the people who can most afford to pay and, as a consequence, to lower tax relative to the rest of the United Kingdom for people at the lower end of the housing scale, are to be welcomed. The measures have resulted in an additional 23,000 home purchasers having no LBTT to pay, and have meant that 93 per cent of house purchasers in Scotland either pay no LBTT or pay less than they would have under stamp duty land tax. That is good not only for individuals and families who benefit as a result; it is also good for the economy because it makes it easier for people to get on the housing ladder, and it helps the housing market at the lower end and enables a more mobile workforce, as a consequence.

I know that there was some concern that the measures could have a detrimental effect on the property market at the higher end, so it is worth taking a minute to review the data to determine whether that has been the case. The latest data from Revenue Scotland show that transactions in the £325,000 to £750,000 band, which represents the top 7 per cent of the market, have grown by 20 per cent and that revenues in the band have grown by 23 per cent over the past year. At the very highest segment, sales above £750,000, which represent the top 0.5 per cent of the market, have been growing even more strongly, with a 31 per cent increase in annual transactions being recorded. That suggests that the strength of the market in those bands has not been impacted by the Government’s restructuring of the LBTT.

I am very glad to see the specific point in respect of the additional dwelling supplement being addressed in the bill, and will be glad to see the bill being passed by Parliament.