New property levy has left property owners in the dark

New property levy has left property owners in the dark

Scottish homeowners and estate agents are still in the dark over proposed legislation that will impose an extra tax on buyers of second homes, according to Tayside based solicitors and estate agents Miller Hendry.

In a bill announced in December as part of the draft 2016/17 Scottish Budget, buyers of second homes or buy-to-let homes in Scotland would be hit by a three per cent tax levy on top of the existing Land and Buildings Transaction Tax. Called the Land and Buildings Transaction Tax (LBTT) (Amendment)(Scotland) Bill, the law affects those buying an additional home for £40,000 or more.

But with the April 1^st start date looming for the legislation, there is confusion over who exactly will be affected. Miller Hendry is calling for more clarification as the property market starts to warm up for the Spring, and suggested the bill\'s implementation be delayed.

Alistair Duncan, head of the commercial department at Miller Hendry, commented:

\"There is much more detail needed on the new bill, and it is needed soon. The public needs answers on whether overseas owners are covered, for example. There are also questions surrounding married couple ownership and civil partnerships, and the implications for parents buying homes for their children.

\"Spring is traditionally a busy time anyway for home buying and selling. Our additional concern is that the new bill, and the fact that people are still confused about its implications, will lead to a flurry of buying and selling. That, in turn, will put the squeeze on estate agents and solicitors, which will have a direct impact on the public.

\"We are surprised at the speed at which this is being enforced, and would ask the Scottish Government to consider delaying the bill\'s implementation until these issues are ironed out.\"

A call for evidence surrounding the new bill ended on January 29^th 2016. Among the responses were concerns over: its impact on the availability of rental accommodation; its impact on Scotland\'s holiday homes market and tourism; and the possibility of reduced housing stock if investors go elsewhere. There were also calls to delay the bill\'s implementation until 2017. The Scottish Government estimates that the new measure will raise between £17 million and £29 million in 2016/17.

For further advice or information on property law or other legal issues, visit www.millerhendry.co.uk