Landlords in Scotland to be hit by tax crackdown

Scotland’s Finance Secretary John Swinney (pictured) has announced that a 3 per cent levy will be charged for people acquiring second homes and buy-to-let landlords in addition to the existing Land and Buildings Transaction Tax (LBTT), which replaced UK stamp duty in April. The Scottish Fiscal Commission, the official watchdog of the Scottish Government’s tax and spending plans, estimates that the supplement on LBTT, which will be introduced in April 2016, will affect between 8,500 and 12,500 transactions annually, and could raise up to £27 million. The LBTT system, which raised £218 million in its first seven months, uses a graduated tax rate, working in a similar way to income tax. Swinney commented, “We need to ensure that the opportunities for first-time buyers to enter the market in Scotland are as strong as they possibly can be and we need to make certain that tax changes elsewhere in the United Kingdom do not make it harder for people to get on the property ladder. “That is why I today announce my intention to introduce a supplement to LBTT for those purchasing an additional home for £40,000 or more.” The announcement regarding the introduction of a 3 per cent surcharge on…