SNP ministers reject Tory call for homebuyers’ tax to be abolished

The Scottish Government has rejected Tory calls to scrap the tax paid by those buying a new home, with ministers claiming such a move could lead to cuts to “vital public services”.

Scottish Conservatives had urged SNP ministers to abolish the land and buildings transactions tax (LBTT), which is the equivalent of stamp duty.

The Tories had made the plea after Conservative leader Kemi Badenoch used her party conference speech to pledge the Tories will abolish stamp duty if they win the next UK election.

But they were rebuffed by public finance minister Ivan McKee, who said that the “land and buildings transaction tax will not be abolished”.

Mr McKee added: “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.”

He insisted: “Any ill-thought-through suggestion to remove LBTT would inevitably lead to cuts in vital public services, like the NHS.”

However, the Tories had argued that scrapping LBTT for those buying their main property would be a “bold” move which would “encourage aspiration”.

Scottish Conservative housing spokesperson Meghan Gallacher added that the move would “help people get onto and move up the property ladder”.

The charge 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.

Ms Gallacher said that abolishing LBTT was “a policy for the aspirational and the SNP should enact it in Scotland as soon as possible”.

She added: “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 onto 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.”