Scotland’s Land and Buildings Transaction Tax has raised £483.6m ($650m) in the past 12 months, £55m less than the government had forecast. The failure to collect the predicted £538m came after warnings from property experts that the tax would dent housing sales, particularly at the higher end of the market. The tax came into effect in 2015 and levies a progressive 2% tax on residential properties worth over £145,000, rising to 12% on those worth over £750,000. Holiday home, buy-to-let and first home buyers are charged a further 3% as an additional dwelling supplement.
Scotland’s Land and Buildings Transaction Tax has raised £483.6m ($650m) in the past 12 months, £55m less than the government had forecast. The failure to collect the predicted £538m came after warnings from property experts that the tax would dent housing sales, particularly at the higher end of the market. The tax came into effect in 2015 and levies a progressive 2% tax on residential properties worth over £145,000, rising to 12% on those worth over £750,000. Holiday home, buy-to-let and second home buyers are charged a further 3% as an additional dwelling supplement.