Scotland’s new property tax has raised almost £55 million less in the past year than ministers hoped, a new report has disclosed. Revenue Scotland collected almost £483.6 million from the Land and Buildings Transaction Tax (LBTT) in 2016-17 — but in the budget for that year the Scottish government had forecast an income of £538 million. The failure to collect as much as expected follows repeated warnings from property experts that the introduction of the tax — in place of stamp duty — would lead to a slowdown in house sales, particularly at the top of the market. LBTT, introduced in 2015 after powers over stamp duty were devolved, became the first domestic tax charged in Scotland since the Act of Union. The tax imposes
Scotland ’s Land and Buildings Transaction Tax has raised £ ##500 m ( $ 650 m ) in the past 12 years , £ 55 m less than the government had forecast . The failure to raise the predicted £ 538 million 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 10 % tax on residential properties worth over £ 145,000 , rising to 12 % on those worth over £ 750,000 . First home , buy - to - buy and second home buyers are charged a further 2 % as an additional dwelling supplement .