The Scottish Conservatives have called for the SNP to abolish Land and Buildings Transaction Tax (LBTT) on personal homes to “encourage aspiration and help people get onto and move up the property ladder”.
In her speech at UK Conservative conference, Kemi Badenoch today announced that the party would seek to abolish Stamp Duty on primary residences in the rest of the UK.
The Scottish Conservatives have said the SNP should make the same move in Scotland.
The policy would be paid for by Barnett Consequentials from the UK government which would come to the Scottish government as a result of the stamp duty cut in England.
The proposals are fully funded, as the UK Conservative party announced proposals this week to make £47 billion of savings by reducing spending on areas such as social security benefits and foreign aid.
The Institute for Fiscal Studies has warned Stamp Duty is the “most economically damaging tax”.
The IFS said: “More importantly, in a crowded field, SDLT has a claim to be the most economically damaging tax in the UK. It makes both housing and labour markets less efficient, acting as a drag on growth. It should be reduced or – even better – abolished, and certainly not increased.”
Scottish Conservative shadow cabinet secretary for housing Meghan Gallacher said: “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.
“The SNP’s instinct is to punish people with ambition and aspiration. Our party is different. We believe in bringing down bills for the strivers who want to put in hard graft and get ahead.
“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.
“It would also be fully funded because unlike other parties, we believe in fiscal responsibility and not leaving a vast debt burden to future generations.
“This is a policy for the aspirational and the SNP should enact it in Scotland as soon as possible.”