The last six months alone have raised £380.4m and contain the six highest totals since LBTT was introduced in April 2015.
Over the last year £107.9m was raised from 1,270 sales above £750,000 meaning each purchaser paid an average of £84,960 in tax on each property.
A further £280.2m was raised from 16,760 buyers paying more than £325,001 for a property which is the point at which the tax increases to 10 per cent.
In addition, £172.1m was raised from landlords, property investors, and second homeowners which is equivalent to 26.8% of all revenue raised. The last five months of 2022 were the highest monthly figures ever recorded.
This means that £560.2m (87.2 per cent of the total raised) was charged to those paying over £325,001 for a property, property investors, landlords, and second homeowners.
David Alexander, the chief executive officer of DJ Alexander Scotland, comments: “There is no doubt that the property market has boomed over the last two years. Prices have risen at an unprecedented rate and demand has never been higher. The result is that taxes charged on property sales are now substantially higher than even three years ago.
“With almost 90 per cent of revenues generated from a few thousand buyers it is important to realise just how vital these individuals are to ensuring we have a buoyant and dynamic property market.
“They are already paying considerably more in tax than their counterparts south of the Border, so it is essential that Scotland remains as attractive a destination as possible for homebuyers, investors, landlords, and second homeowners.”
Alexander continues: “At its heart LBTT, like Stamp Duty Land Tax in England, is a simple cash grab for governments. You can’t hide a home, so owners simply have to pay up or move to somewhere where the purchase costs are not quite as punitive.
“It is important to be aware that as the house market slows, so these revenues will slow, and the government will lose income. We need to ensure that Scotland continues to have a strong and lively housing market and part of this must be fairer taxation on property.
“If Scotland is to be seen as a progressive country wanting to attract the brightest and the best then we must ensure we have a property tax regime which is at least as fair and as competitive as our nearest neighbour. At present we risk putting off buyers, investors, landlords, and second homeowners with a much more punitive tax take. We must have a tax system which is more broadly based and encourages homeownership, investment, and the private rented sector.”
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Well personally, I would not invest in btl in Scotland until the NS gremlin is no longer ruling in her dictatorship there. I’m half Scottish myself and she is ruining the country in every way, not just with punitive property taxes.
She is crucifying private tenants and making it even harder for families as I and many other Scottish Landlords now only rent to students who won't stay indefinitely and where the rents aren't capped on new tenancy agreements.
Yes, it's rubbish being a landlord in Scotland. I'm looking for investments further afield for my hard earned and taxed money. The sell up has begun.
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