The Scottish Parliament’s Finance Committee has given its backing to legislation that will levy a supplement on the purchase of additional houses.

The Land and Buildings Transactions Tax (Amendment) (Scotland) Bill introduces a supplement on purchases of additional residential properties in Scotland (such as buy-to-let properties and second homes) over £40,000. As drafted, the Bill would apply across the board to all relevant purchases above the threshold.

However, while the committee agreed with the general principles of the Bill, it has emphasised the need to balance the interests of first time buyers with the needs of those who rent their homes and with the interests of house builders and investors, to protect the supply of new homes. The committee has therefore called for the introduction of a relief on bulk purchases of six properties or more.

The committee also noted concerns about the potential impact on the private rental sector through a reduction in the number of homes available for rent and higher rental costs. The report recommends that the Scottish Government must closely monitor the impact of the supplement on rent levels, especially in areas where rents are already high.

In addition, the report highlights support for a number of other reliefs, including for registered social landlords and local authorities, and for student accommodation.

Contains information licensed under the Open Scottish Parliament Licence V.2

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