A change to taxation of Scottish landlords has been criticised, with Propertymark claiming this will make Scotland the most expensive part of the UK to let.
Yesterday, MSP and Scotland’s secretary for finance and local government Shona Robison announced the 2024 Scottish Budget.
This included increasing the ‘additional dwelling supplement’, or ADS, from 6% to 8% in 2025.
The ADS is an additional charge added to any Land and Building Transactions Tax payable in Scotland.
This is usually due if someone buys an additional residential property in Scotland, for BTL reasons or as a second home.
Propertymark has been critical in its response, with the trade body arguing this is “out of touch” with the country’s housing needs.
Timothy Douglas, head of policy and campaigns at Propertymark commented: “With the huge demand for private rented property and long-term rent control measures contained in the Housing Bill, the Scottish government’s decision to raise [ADS] under Land and Building Transaction Tax from 6% to 8% is simply wrong and out of touch with the housing needs of Scotland.”
The Scottish Association of Landlords (SAL) has joined this criticism, with CEO John Blackwood calling this change “another blow” to landlords in the country.
“Instead of encouraging new investment, [the Scottish Government] seem to be going out of their way to deter investors from buying from the many landlords who have had enough and are opting to sell,” said John.
“Recently, the UK government in the Autumn Budget decided to increase a similar tax south of the border.
“Following suit, the Scottish Government is clearly signalling to the market that they are not interested in new investment in Scotland.”
SAL did highlight that the government is open to a review of the Land and Buildings Transaction Tax, with the association aiming to use this opportunity to lobby for ADS’s removal.
