Meeting of the Parliament 17 March 2026 [Draft]
I thank members for their engagement with and scrutiny of the bill so far; in particular, I thank those members who met me in advance to discuss their proposed amendments. I hope that, as we did at stage 2, we will be able to continue to engage constructively today.
On group 1, I invite all members to support my technical amendment 5, which seeks to update provisions relating to the regulation-making powers on reliefs to reflect the position that was agreed at stage 2.
Amendments 6 and 7 seek to delay implementation of the levy. As was the case when the amendments were lodged at stage 2, the Government cannot support them. I have already delayed commencement of the levy to April 2028, and I have committed to publishing indicative rates in June this year. That gives developers nearly two years’ advance certainty about their levy liabilities. My view is that that provides sufficient notice for them to plan their affairs accordingly.
I have, however, received representations from the Scottish Property Federation that some of the flexibilities that we have built into the design of the tax will not affect developers of built-to-rent and purpose-built student accommodation in the same way that they will affect other parts of the tax base. Although I was unable to support Michelle Thomson’s amendments at stage 2 to put in place permanent payment flexibilities for those developer types, I am prepared to consider what payment flexibilities can be put in place during the first few years of the levy. The Government will therefore work with industry to consider the scope of any payment flexibilities and with Revenue Scotland to ensure that any increased risk to revenue can be managed with appropriate safeguards.
Amendments 8 and 10 seek to introduce an exemption for property that is sold to first-time buyers, while amendment 15 seeks to deliver a similar effect via a relief for first-time buyers. As I set out at stage 2, those provisions would be complex to administer. There are also concerns about the drafting of amendments 8 and 10, and I was glad to hear that Michelle Thomson will not move them. However, following on from the engagement with her, the Government will work with partners to consider and test a mechanism for providing relief to first-time buyers. To that end, I intend to support amendment 15 as a vehicle to deliver that aim.
Liz Smith’s amendments 9 and 18 seek to introduce an exemption for heritage buildings. As I set out when the amendments were lodged at stage 2, I am sympathetic to the aim of protecting conversions, but the Government is unable to support the amendments as drafted. However, I am happy to set out to Parliament my intention to consider a broader relief for conversions using the regulation-making powers in section 11. That will be in addition to the minimum 50 per cent brownfield relief that we have included in the bill. The Government will consult stakeholders on the scope and definition of relief for brownfield sites and conversions as a whole—not just listed buildings—before bringing regulations to Parliament in the next session. I hope that Liz Smith will support that commitment, and I ask her not to move amendments 9 and 18.