Abolish tax on buying homes to encourage aspiration, Tories demand
The Scottish Government is being urged to scrap a tax paid by homebuyers, with Conservatives insisting this would be a “bold” move which would “encourage aspiration”.
The Tories argue abolishing the Land and Buildings Transaction Tax (LBTT) for those buying their main residence would “help people get on to and move up the property ladder”.
The charge, which is the equivalent of stamp duty south of the border, is linked to the value of the property being purchased. People buying a home worth £145,000 or less do not pay anything, while buyers whose new home is worth £750,000 or more have to pay 12% of the value of the property.
She said: “This is a policy for the aspirational and the SNP should enact it in Scotland as soon as possible.
“Everyone who works hard in Scotland and Britain should have the opportunity to own their own home.
“We are calling for the SNP to abolish LBTT, Scotland’s version of stamp duty, on primary residences.
“This bold tax cut would encourage aspiration and help people get on to and move up the property ladder.”
Ms Gallacher said the Tories “believe in bringing down bills for the strivers who want to put in hard graft and get ahead”.
She added: “Kemi Badenoch’s new policy announcement would make our economy stronger, ensure the housing market is fairer, and give everyone a real stake in society.
“It would benefit people of all ages. Young people who are trapped renting would be able to achieve the dream of home ownership, families would no longer be penalised for needing more space for their children, and pensioners who want to move to a more manageable home would be able to do so tax-free.”
Ms Badenoch used her speech to the Conservative Party conference in Manchester to insist stamp duty “is a bad tax”.
She stressed the need to “free up our housing market”, arguing that if people cannot afford to buy a home or move house, “social mobility is dead”.
Ms Badenoch said she had looked at options for changing the stamp duty thresholds, but felt these would not be sufficient – so instead told voters: “The next Conservative government will abolish stamp duty on your home.”
Public finance minister Ivan McKee said: “No, Land and Buildings Transaction Tax will not be abolished.
“Scotland’s tax policies are responsible, grounded in evidence, and work carefully to balance the need to raise revenue with the impacts on taxpayers and the economy.
“Any ill thought through suggestion to remove LBTT would inevitably lead to cuts in vital public services, like the NHS.”