Views wanted on new stamp duty tax bill

05.12.2012

Home-buyers across Scotland will be among those paying close attention to a call for evidence issued today by the Finance Committee.  A wide range of mortgage, tax, land and housing bodies are asked to submit their views along with the general public on the Land and Buildings Transaction Tax (Scotland) Bill.

The Bill, which is effectively Scotland’s replacement on stamp duty tax, will provide the rules and structure which will impose a tax on anyone buying, leasing or taking other rights (such as options to buy) over land and property in Scotland. It will cover both residential and non-residential transactions.

The Scottish Government has sought to reflect its four tax principles of certainty, convenience, efficiency and proportionate in the Bill. The tax will be collected by a new body, Revenue Scotland through Registers of Scotland. By 2015 the body will move from being an administrative arm of the Scottish Government and will be established in statute at arm’s length from Ministers.

Committee Convener Kenneth Gibson MSP said:

“The Finance Committee would like views on the Bill’s objectives for a tax to be as simple as possible to understand and pay and which will place a minimum administrative burden on taxpayers and the tax authority.

“We will also be scrutinising tax avoidance, exemptions and relief, as well as the proposed new progressive tax structure and the administrative roles of Revenue Scotland and the Registers of Scotland.”

The seven parts of the Bill are as follows:

• General provision for the tax
• Key concepts underlying the tax
• How tax is to be calculated and who is liable to pay
• Tax returns and other administrative matters
• Application of the tax to certain bodies, persons etc.
• General provision and interpretation
• Commencement and short title

Background

The Land and Buildings Transaction Tax (Scotland) Bill was introduced in the Parliament on 29 November 2012. Subject to the approval of Parliament, the Finance Committee will be the lead committee in scrutinising this Bill.

The Committee expects to consider written submissions and take oral evidence during January and February 2013 and publish its Stage 1 report around the end of March 2013.

This is the first of three Bills being brought forward by the Scottish Government as a consequence of the Scotland Act 2012. The Landfill Tax Bill is expected to come forward in spring 2013 and the Tax management Bill in autumn 2013.