Land tax reform can aid growth

A reform of the way in which Scotland taxes land - with an emphasis on the role of land values - has been recommended to the Scottish Government as a route to economic recovery and delivering on its land policies.

Makingtherecommendation,thescottishlandcommission said that while 50 per cent of the UK’S wealth wastiedupinlandandproperty, it only accounted for around 10 ten per cent of the total tax base.

On the emerging carbon and natural capital markets, thecommissionrecommended that taxation should be used to ensure public as well as private benefit emerged from future carbon values.

The Commission said that identifying changes to the tax system could help regenerate town centres, ensure that the movetonetzerowasajusttransition,deliverwiderbenefitsfor localcommunities,andsupport a more diverse pattern of land ownership.

However, responding to the recommendations, Scottish Land and Estates warned that any amendments to taxation systems had to be thought through with great care.

“Introducing tax measures in order to promote land reform would run the risk of damaging the substantial benefits rural businesses already create – not to mention the considerable tax and rates that are already paid by these companies,”saidchiefexecutive, Sarah-jane Laing.

She said that bringing all land onto the valuation roll for non-domestic rates would be a mammoth exercise to complete – which would see Scotland’s farming businesses caught up in a mountain of red tape even if there were no plans to charge rates at present.