Committee
Finance and Constitution Committee 16 January 2019
16 Jan 2019 · S5 · Finance and Constitution Committee
Item of business
Subordinate Legislation
Land and Buildings Transaction Tax (Tax Rates and Tax Bands etc) (Scotland) Amendment Order 2018 (SSI 2018/372)
I am more than happy for him to take the credit for that, and not me. It is true to say that, for all years from 2018-19 onwards, LBTT is forecast to raise more than is removed through the block grant adjustment. The SFC was clear that the reduction in the forecast for this year relates to flatter house prices and transaction growth, which are common features across the entire UK housing market. The forecasts demonstrate that the tax works and will raise valuable revenue. Given that our taxes are so contingent on the performance of the rest of the UK, LBTT is vital.
In the same item of business
The Convener
SNP
The next item of business is consideration of subordinate legislation relating to the land and buildings transaction tax. We are joined by Kate Forbes, the M...
The Minister for Public Finance and Digital Economy (Kate Forbes)
SNP
Thank you, convener. I will just say a few words and then I will be very happy to take questions from the committee. The order provides for changes to land ...
The Convener
SNP
Thank you, minister. We will start with questions from Murdo Fraser.
Murdo Fraser
Con
I remind members of my entry in the register of members’ interests that relates to my property investments. I want to ask about the increase in the addition...
Kate Forbes
SNP
There were three questions there, and I will take each in turn. The first was on investments, the second was on rents and the third was on the evidence for t...
Murdo Fraser
Con
On the last point that you made about the increase, would it be reasonable for the Scottish Government to monitor the impact on the market? Should the eviden...
Kate Forbes
SNP
Absolutely. That will definitely be kept under review because of the twin aims of supporting first-time buyers and raising revenue. It is important that, in ...
Murdo Fraser
Con
I have another question on a different but related subject. KPMG makes the point in its submission that the period within which people can claim back ADS if ...
Kate Forbes
SNP
We recognise that there are concerns about the application of ADS in specific cases. As Murdo Fraser will know—I think he welcomed it at the time—we have leg...
Patrick Harvie
Green
The minister mentioned fairness as one of the objectives of the Government policy. We are frequently told that fairness is a general goal of the Scottish Gov...
Kate Forbes
SNP
Patrick Harvie makes an important point about fairness. Without touching specifically on the changes that we are discussing today, I note that our aims in ma...
Patrick Harvie
Green
LBTT was a slight improvement on what went before and the changes that we are discussing are a slight improvement in their own right, but is the Government s...
Kate Forbes
SNP
Certainly, in terms of the way that the Scottish Government has taken on more tax powers over the past two years in particular. We are always looking at ways...
Willie Coffey
SNP
Last week, I asked the Scottish Fiscal Commission for the reason behind its forecast of fairly healthy growth in LBTT revenue over the next five years. The a...
Kate Forbes
SNP
I am more than happy for him to take the credit for that, and not me. It is true to say that, for all years from 2018-19 onwards, LBTT is forecast to raise ...
Willie Coffey
SNP
Is one element that property values are moving through the thresholds and, therefore, more revenue is being yielded? The Fiscal Commission alluded to that be...
Kate Forbes
SNP
The changes reflect the unique aspects of the Scottish property market, which is slightly different from the market in the rest of the UK.
The Convener
SNP
As no other member has indicated a desire to ask a question, we move to agenda item 3, which is consideration of the motion on the order. I invite the minist...
The Convener
SNP
Do members have any further comments?
Murdo Fraser
Con
I do not intend to oppose the order, but I think it is worth putting on the record some of the issues that stakeholders raised in our previous evidence sessi...
The Convener
SNP
We can note that in the report. The question is, that motion S5M-15215 be agreed to. Are we agreed? Members: No.
The Convener
SNP
There will be a division. I have missed saying that. For Arthur, Tom (Renfrewshire South) (SNP) Bibby, Neil (West Scotland) (Lab) Coffey, Willie (Kilmarn...
The Convener
SNP
The result of the division is: For 8, Against 0, Abstentions 3. Motion agreed to, That the Finance and Constitution Committee recommends that the Lands and...
The Convener
SNP
The committee will produce a short report on the order. I thank the minister and her officials. As previously agreed, we will take the next item in private....