Devolved tax proposals to be examined


The impact on the property market and the wider economy of the Scottish Government’s approach to the devolved taxes is to be examined by the Scottish Parliament’s Finance Committee as it begins its scrutiny of the 2015-16 draft budget.

The draft budget, which is due to be introduced in early October, will this year include proposals for setting rates and bands for the devolved taxes, including the Land and Buildings Transaction Tax (LBTT). The Committee has today (14 August) launched a call for evidence to get views on these proposals and the likely impact on the property market and the wider economy.

Committee Convener Kenneth Gibson MSP said:

“For the first time, the draft budget is due to contain proposals for setting the rates for the devolved taxes. It is important that we use the opportunity of our budget scrutiny to examine the impact of these proposals and what this will mean for the property market and economy in Scotland.

“The introduction of the Land and Buildings Transaction Tax will no doubt be significant for the property market in Scotland. We want to hear whether the Scottish Government’s proposals will work in practice and if the proposed scenarios will deliver the progressive tax structure needed.”  

The Committee will also take evidence on the draft borrowing plans set out in the 2015-16 draft budget and will examine how much borrowing will be invested and how this contributes to achieving the Scottish Government’s outcomes.

To aid the Committee’s scrutiny of the draft budget the Committee would welcome views on: 

  • the threshold for the purchase price of the nil rate band for both residential and non-residential property;
  • the rate for the other tax bands; 
  • whether there should be more or fewer bands and, if so, the rate for any additional tax bands; 
  • whether the rates and bands should be set so that the impact of replacing Stamp Duty Land Tax with LBTT is broadly financially neutral; 
  • the Scottish Government’s proposal to include a lower top rate for non-residential property than for residential property;


The Land and Buildings Transaction Tax (Scotland) Act provides for a proportional progressive tax structure for both residential and non-residential property transactions.  This includes a nil rate band and at least two other bands. 

The Scottish Government provided illustrative scenarios in its consultation document, Taking Forward a Scottish Land and Buildings Transaction Tax ( 

The Committee’s call for evidence is open until Friday 24 October 2014. 

More information on submitting evidence to the Committee can be found on the Committee’s webpage, below:

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