Written Question · S6W-34780 · Session 6
What its response is to the Institute for Fiscal Studies report, Assessing Scottish tax strategy and policy, and its reported findings that…
The question
To ask the Scottish Government what its response is to the Institute for Fiscal Studies report, Assessing Scottish tax strategy and policy, and its reported findings that the Scottish Government’s current use of Land and Buildings Transaction Tax and the Additional Dwelling Supplement (ADS) is "an exceptionally damaging way to raise revenue" and that "the increase in ADS makes a bad tax bigger and even more harmful".
The answer
The Scottish Government has taken a progressive approach to the overall arrangements for Land and Buildings Transaction Tax, prioritising support for first-time buyers and home movers while raising vital revenue to support public services.The Scottish Fiscal Commission has forecast that increasing the rate of the Additional Dwelling Supplement will raise an additional £32m in 2025-26. The Scottish Fiscal Commission assume that half of those Additional Dwelling Supplement transactions which do not proceed will be replaced by first-time buyer and home mover transactions in 2025-26 and that this will increase to three-quarters from 2026-27 onwards.The priorities set out in the Tax Strategy will enable us to deliver tax policy which considers the whole tax system, informed by a programme of evidence, evaluation and engagement.
In the Official Report
No contribution in the Official Report cites S6W-34780 by reference.