Two Members of the Scottish Parliament have broken rank with their own party to query the motivation behind a new property tax rise north of the border. 

Just before Christmas the ruling Scottish National Party government increased the Land and Building Transaction Tax surcharge for additional homes from 4.0 per cent to 6.0 per cent. This is the Scottish version of English stamp duty, where the additional homes surcharge is only 3.0 per cent. 

However, Scottish Housing News now reports that at a Scottish Parliament finance committee meeting, two SNP Members of the Scottish Parliament questioned the reason for the increase.

Kenneth Gibson, declaring his interest as a landlord, quizzed public finance minister Tom Arthur about the proposal, asking: “You’ve talked about supporting first time buyers. Where is the evidence the additional dwelling supplement has actually helped first time buyers and encouraged them into the market? Because although it may impact on second homes, I’m not aware of any evidence to suggest it’s actually helped increase the number of people that are able to go onto the housing ladder in the first place.”

Arthur replied: “Rhe policy intent is to allow first time buyers to compete more effectively. That is ultimately what the policy intent is.”

And Michelle Thomson – who declared an interest as a buy to let investor – asked: “Do you undertake a risk assessment of tax changes based on setting out the risk, the probability of it occurring, and the impact if it does?”

Arthur said: “We consider what the behavioural impacts are going to be both in revenue and, as I set out with relation to the framework for tax, how it relates to wider objectives as a government.”

Thomson then added: “There is evidence that landlords are starting to leave the market and that will absolutely have an impact on available supply, and therefore rents. I am very supportive of what the Scottish Government is trying to achieve, but there has to be an assessment of the effects, behavioural effects and so on. And thus far, I haven’t been convinced there’s a recognition of that, and I certainly haven’t seen any data that would support that in terms of risk.”

You can see the full Scottish Housing News report here.