Property tax bounty may be about to dry up in Scotland | David Alexander
David explains, “In the last year landlords, investors and second homeowners contributed £172.1m through ADS – equivalent to 26.8 per cent of all property taxes – with the last five months of 2022 being the highest ever monthly figures recorded. This means that £560.2m (87.2 per cent of the total raised) was charged to the people who paid over £325,001 for a property, property investors, landlords and second homeowners.
That is a very high percentage of revenue from a relatively small number of people and leaves the Scottish market particularly vulnerable to any shifts in sentiment in this group.
Given that these substantial revenues were generated prior to the recent increase from 4 to 6 per cent in ADS announced in December’s budget, and applies to all purchases which are for properties not to be used as your principal residence, there is a risk that the substantial bounty generated may be about to dry up.”
Read what David has to say in full here.