Property taxes in Scotland reach record high

Property taxes in Scotland reach record high

0:06 AM, 29th August 2024, About 4 months ago

Text Size

Property taxes in Scotland have soared to a new record high, raking in almost £640 million for the Scottish Government in the past year, research reveals.

According to an analysis by DJ Alexander Ltd, Scotland’s biggest lettings and estate agency, Land and Buildings Transaction Tax (LBTT) revenues totalled £639.8 million in the 12 months to July 2024.

This marks a big increase of £17.7 million compared to the previous year.

The figure for July alone was a staggering £75.9 million – the highest monthly total recorded since data began being collected in April 2015.

‘Properties purchased by landlords’

A significant portion of the tax revenue, £197.3 million, comes from the additional dwelling supplement (ADS), which is charged on second homes and properties purchased by landlords and property investors.

This represents 30.8% of the total raised and is £33.8 million higher than the same period in 2022/23.

David Alexander, the firm’s chief executive, said: “The Scottish homebuyer is now generously contributing almost two-thirds of a billion pounds in property taxes annually.”

He highlighted the disparity between Scotland and England that the 10% property tax begins at £325,001 in Scotland, compared to £925,001 in England.

He added: “Combine this with higher personal taxes and you see a picture of a population being squeezed for taxes at a much lower threshold than our neighbours south of the border.”

Average price of a home

He continued: “A property valued at £325,000 is not even the average price of a home in some parts of Scotland.

“For new builds prices are considerably higher than this level with East Lothian, Edinburgh and East Renfrewshire all £100,000 above the £325,000 threshold.”

Despite the higher taxes, Mr Alexander says that the Scottish property market remains resilient.

However, he has concerns about the long-term impact of these taxes on the Scottish economy.

Mr Alexander said: “If it starts to deter individuals and companies from future investments in Scotland, then far from being progressive taxation it will be regressive.”


Share This Article


Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More