Slowdown produces lower tax take
LBTT fall points to decline in commercial property
Tax revenue through the land and buildings transaction tax (LBTT) is down by almost a third on last year, indicating a slowdown of the commercial property market.
Revenue Scotland has released data today showing that commercial revenue from the LBTT, which replaced stamp duty, fell 31% in June compared to the same month in 2016.
Revenues from the commercial element of the tax totalled £11.2m last month, significantly down from £16.3m last year. The Scottish Property Federation, said the figures point to the continued slowing of the commercial property market in Scotland.
Over the first half this year revenue was £85m, compared to £100m for the same period last year.
It was hoped that 2017 would see the commercial property market in Scotland recover after it the total value of sales contracted by 13% in 2016.
Andrew Sutherland, vice chairman of the SPF, said: “A strong and healthy commercial property market not only contributes to government coffers via LBTT, but also provides Scotland with high quality jobs and economic growth.
“Today’s figures are worrying and serve to reinforce our calls for the Scottish Government to do more to support the property industry and the wider Scottish economy.
“Scotland needs to remain positive and open for business in order to secure appropriate new investment and development.
“Uncertainty and low economic growth prevents the commercial market in Scotland achieving its full potential.”