PARLIAMENTARY WRITTEN QUESTION
Taxation: Scotland (9 September 2015)

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the cost to the public purse of forestalling in relation to the land and building transaction tax; and what additional sums the Scottish Government has requested in transfer to the Scottish Budget for 2015-16 in relation to that tax.

Asked by:
Ian Murray (Labour)

The Scottish Government’s decision to pre-announce the rates and thresholds for the land and buildings transactions tax (LBTT) led to changes in the timing of some transactions in Scotland. Specifically, some higher value transactions were brought forward into 2014-15, while some lower value transactions were delayed into 2015-16.

In their March 2015 ‘Devolved taxes forecast’ publication, the OBR estimated that “This increases UK SDLT receipts under the old system by £11 million in 2014-15 and reduces the LBTT forecast by £20 million in 2015-16”. The treatment of these policy ‘spillover’ effects was considered by the Smith Commission and is now being discussed by the UK Government and Scottish Government as part of the wider fiscal framework discussions.

Answered by:
Greg Hands (Conservative)
14 September 2015