Scottish draft budget

On 12 December Scotland’s finance secretary Derek MacKay set out details of the Scottish draft budget announcing plans to introduce yet another deterrent to landlords wishing to enter or invest in the private rented sector, with an increase in the Land & Buildings Transaction Tax additional dwelling supplement (ADS) from 3% to 4%. The increase will come into force from 25 January 2019 but will not apply if the contract for a transaction was entered into prior to 12 December 2018. The ADS was introduced on 1 April 2016 and applies to purchases of additional residential properties (other than one which is intended to be the buyer’s main residence and is replacing their former main residence). There are a limited number of exemptions and reliefs which can be read here. The government’s stated aim in introducing the ADS was to protect opportunities for first-time buyers in Scotland.

There are no changes planned to income tax rates and inflationary increases in the starter and lower rate thresholds.

You can read the draft Scottish Budget for 2019/20 in full by clicking here.