Hansard

It is always a delight to take part in a consensual debate with the cabinet secretary and Mr Fraser. Scottish Labour supports the introduction and the passage of the bill, which we hope will happen shortly and which will alter the anomalies in relation to the additional dwelling supplement for land and buildings transaction tax.

The issue that has come to light is that, where there is an additional dwelling supplement, normally there is a 3 per cent surcharge. If the original property is sold within 18 months, it is subject to a relief. The anomaly that has been highlighted, principally by Mr Fraser, is that where couples are married, cohabiting or living in a civil partnership, they were not liable to claim that relief. Clearly, that is unfair and it is against the principles of taxation, which the cabinet secretary has spoken about at length at the Finance and Constitution Committee. It is right that Parliament takes steps to address that anomaly.

The proceedings were consensual as we moved through stages 1 and 2, and I am sure that that consensus will continue. The fact that there are no stage 3 amendments emphasises not just the narrow scope of the bill but the broad agreement across the Parliament on how to address the issues.

I know that the land and buildings transaction tax forum, people who are well engaged in the use of tax and other stakeholders have been unanimously supportive of the proposed change, which is very welcome.

There are two issues that we need to be aware of going forward. As the cabinet secretary has said, it is important that we raise awareness of the change, so that those people who are eligible to claim relief are able to do so and do not end up being unfairly financially penalised. I welcome the fact that Revenue Scotland is raising awareness through its forums and networks.

The other point to bear in mind is the impact that the change will have on the budget, which the financial memorandum said will be between £625,000 and £1.555 million. Although that is a small amount in relation to the large scale of the Scottish budget, it is important to monitor the situation in case the amounts vary and there are impacts on other budget lines.

Scottish Labour very much welcomes the change and the way in which Parliament and the cabinet secretary have considered and acted on the issue. We will be happy to support the change at decision time, which is no doubt fast approaching.