Land and buildings tax revenue drops £1.8m

Revenue from Scotland’s stamp duty replacement fell by £1.8 million on residential sales in the first four months of this year compared with 2017, it has emerged.

The fall in Land and Building Transaction Tax (LBTT) revenues was identified in analysis of Revenue Scotland data by the Scottish Property Federation (SPF).

The SPF warned it will be increasingly difficult for the Scottish Government to achieve its £309m revenue forecast for 201819.

David Melhuish, Director of the Scottish Property Federation, said: “There is notable pressure on the £325,000+ section of the property market, according to the figures for this tax year so far - yet the government’s LBTT targets are heavily dependent on the success of this market segment.”

He added that the 10 per cent LBTT threshold should be £500,000 and not the current £325,000 in order to free up the market.

A Scottish Government spokesperson said: “Recent data shows total LBTT revenues are growing at an annual rate of 17 per cent.

“Over the past year, residential property sales between £325,000-750,000 and sales over £750,000 rose by 9 per cent and 18 per cent respectively.”