The Scottish Parliament has published new legislation to introduce a supplement on purchases of additional residential properties.

The Land and Buildings Transaction Tax (LBTT) (Amendment) (Scotland) Bill was announced last month as part of the government's 2016/17 draft budget.

It proposes a supplement on purchasing additional homes, such as second homes or buy-to-let properties.

The supplement is 3% of the total price of the property for all relevant transactions above £40,000 and will be paid in addition to the current LBTT rates.


It is estimated the move would raise around £23 million in 2016/17.

Deputy First Minister John Swinney said: "Our priority is to make sure that first time buyers have the greatest possible chance to get a foot on the property ladder.

"That is why I decided to take action to avoid any potential distortions which could arise in Scotland from the new higher rates of stamp duty land tax payable on the purchase of additional residential properties, announced by the Chancellor of the Exchequer in his Autumn Statement on 25 November 2015.

"This is particularly relevant to the purchase of additional residential properties, at the lower end of the market, which could make it more attractive to invest in such properties in Scotland compared to other parts of the UK.

"Our LBTT additional homes supplement will ensure that opportunities for first time buyers to enter the housing market in Scotland remain as strong as they possibly can."

The Bill is intended to take effect from 01 April 2016.

(LM/MH)