Land and buildings transaction tax

FORTHCOMING CHANGE relating to the ADS: The Scottish Government on 16 December 2021 launched a 12-week consultation seeking the public’s views on the operation of the Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement (ADS). The consultation sought views on the operation of the ADS, not whether it should continue, or the rate at which it should be charged. The Scottish Government announced in Scottish Budget 2023–24 that they will publish a response to the ADS consultation early in 2023 and launch a further consultation on draft legislation.

Background to LBTT

The Scotland Act 1998 (SA 1998) created the Scottish Executive (now known as the Scottish government) and the Scottish Parliament. SA 1998 devolved limited powers over income tax to the new bodies but these powers were never used. The Scotland Act 2012 (SA 2012) amended SA 1998 to give further powers to the Scottish Parliament, including wider powers over taxation. In particular, the Scottish Parliament was given power to legislate for a new tax, to be charged on the acquisition of Scottish land and buildings, which

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