The Scottish Government's decision to exempt large scale investors from the Land and Buildings Transaction Tax (LBTT) has been welcomed by the Scottish Property Federation (SPF).

Under the ruling, transactions of six or more homes will be exempt from a new proposed Surcharge.

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

Written and oral evidence was presented to Holyrood's Finance Committee as the SPF advocated such an exemption in order to support large scale PRS investors, SME housebuilders, and property entrepreneurs.


David Melhuish, director of the SPF, said large scale investment "has the potential to really help" boosting housing supply in Scotland.

"We believe that there should be an exemption set for larger scale transactions of six or more properties, and we are pleased that the Scottish Government has listened to our concerns and brought in the exemption," he said.

"Significant large scale investment by institutional funds has the potential to really help to boost housing supply in Scotland, and this move will particularly help the emerging build to rent sector.

"Without these recommendations, SME house-builders who were devastated by the financial crash, would have been severely constrained in attracting finance and investment to take forward future development projects."

(LM)