SNP consults on Stamp Duty reductions
Since John Swinney, the Scottish government’s finance secretary announced plans for a new tax collecting agency, Revenue Scotland and plans for separate Stamp Duty and landfill tax regimes have provoked furious debates north of the border. Gail Purvis reports.
A consultation document launched last week set out plans to raise the threshold at which 1% stamp duty land tax is applied from the current £125,000 to a figure as high as £180,000. There would also be a lower rate for properties costing less than £325,000.
Revenue Scotland will be set up this year and become fully operational by 2015 to administer the Scottish versions of stamp duty and landfill tax devolved through the Scotland Act. The new agency will “deliver a better system more in line with Scotlands needs”, the minister said.
According to The Herald Swinney told MSPs the cost for HMRC to administer the new Scottish land and buildings transaction tax and landfill tax would be around £22.2m up to the end of March 2020. The new agency would be able to do so for just over £16.7m.
“It is a sign of the costliness of HMRC that we will both establish Revenue Scotland and implement and collect both of the replacement taxes for less than HMRC would charge us, to deliver what they term a like-for-like system with the UK,” Swinney said.