Cut property taxes or face the real risk of a shortfall in revenue | David Alexander
David Alexander’s latest column for The Scotsman highlights how the latest statistics on Scotland’s Land and Buildings Transaction Tax may be signalling that buyers are opting to relocate due to the increased taxes.
David explains, “Total revenue from both residential sales and non-residential sales (which are collated under the LBTT) was 37.1 per cent down in the first two months of this year falling from £166.8m to £104.9m.”
“Whilst you could argue that these figures are simply a seasonal blip, or reflect increased caution at a time when people are facing greater financial uncertainty, this could also be a harbinger of things to come. The concern is that if this is a more permanent fall in revenue from property due to the higher taxation levels, then the Scottish Government will face a shortfall in its projected earnings for the coming year and subsequent years.”
Read David’s full thoughts on the topic here.