9:52 AM, 13th December 2018, About 4 years ago 17
The Scottish government has announced in its recent budget that it will be increasing the Land and Building Transactions tax (LBTT) additional dwelling supplement to 4% from 3%. This will hit any additional landlord or second home purchases and if approved by the Scottish Parliament will be effective from the 25th January 2019.
However, any property purchase contracted into before the announcement in the budget will be exempt from the increase.
Scottish Finance Secretary, Derek Mackay, indicated that the increase was part of a government drive to support first-time buyers and assist people as they move up the property ladder.
The projected increase in forecast tax revenue is £2.3m in 2018/19 rising to £25.4m in 2019/20. However, it is unclear if this takes into account a subsequent decrease in the number of transactions caused by the increase in costs.
This then begs the question of how much longer before this is copied for the rest of the UK?