Stamp Duty Land Tax collection
John Swinney, Cabinet Secretary for Finance, Employment and Sustainable Growth, has announced that a new body, Revenue Scotland, will be established to administer tax requirements in Scotland. This body will be supported in the collection of the Land and Building Transactions Tax (the Scottish equivalent of Stamp Duty Land Tax) by Registers of Scotland. A full consultation on the arrangements for Revenue Scotland and on this tax was also launched.
The passage of the Scotland Act 2012 means that from April 2015 the Scottish Parliament will be empowered to introduce and manage taxes on the purchase or leasing of land and buildings and the disposal of waste to landfill.
In his statement to Parliament, Mr Swinney outlined Scottish Government plans to make full use of these powers to introduce two replacement taxes that would be embedded in Scots law, reflecting Scottish values and Scottish circumstances. He launched the consultation for the first of these taxes: the Land and Buildings Transaction Tax to replace Stamp Duty Land Tax. The proposals include changing the structure of the tax to a progressive system where the amount of tax paid is more closely related to the value of the property. Two further consultations will be issued before the end of 2012.
Speaking at the Scottish Parliament, Mr Swinney said: “Today we have taken the first step towards the setting and collecting of taxes in Scotland and to doing so better and at less cost than the UK Government.
“In setting up Revenue Scotland, we are developing an innovative approach to taxation, working with existing organisations, to deliver Scottish taxes, set by this Scottish Parliament, and to save the Scottish taxpayer money. These proposals will save at least 25 per cent of the cost of asking HMRC to administer these taxes. This is an example of the advances that could be made if Scotland had the powers to determine its own future.”
Sheenagh Adams, Keeper of Registers of Scotland, said: “Registers of Scotland has collected Stamp Duty Land Tax for HMRC since 2008, and this service has proven to be popular with our professional customers and the property-buying public.
“We are an organisation committed to excellent customer service and supporting Scotland’s economy, and we look forward to working closely with Revenue Scotland as we administer the new Land and Buildings Transaction Tax.”