Land and Buildings Transaction Tax queries: FOI release

Information requested

1. An account of the work done by the Scottish Government measuring the impact of Land and Buildings Transaction Tax and the impact of sub-measures within it (such as choice of boundaries, changes in rates, and use of ADS).

2. Copies of all reports, from 1 January 2023, held by the Scottish Government on the impact/impacts of the Additional Dwelling Supplement.

3. An account of whether the Scottish Government has done any investigatory work into the longterm impact of raising the ADS from 6% to 8% on the private sector housing supply, both in the rental sector and any other classification.

4. Copies of any and all reports held by the Scottish Government pertaining to the impact of raising ADS from 6% to 8% on supply of housing.

Response

Your first ask is for an account of the work done by the Scottish Government measuring the impact of Land and Buildings Transaction Tax and the impact of sub-measures within it (such as choice of boundaries, changes in rates, and use of ADS).

While our aim is to provide information whenever possible, in this instance the Scottish Government does not have the information you have requested. The reason for this that there is no specific account of the work done by the Scottish Government in this regard.

This is a formal notice under section 17(1) of FOISA that the Scottish Government does not hold the information you have requested.

However in case helpful as more general commentary, the Scottish Government considers the data published by Revenue Scotland regarding LBTT on an ongoing basis. This includes Revenue Scotland’s monthly statistics on LBTT and its Annual Summary of Trends in the devolved taxes. Monthly statistics provide the Scottish Government with data related to residential and non-residential LBTT and the LBTT ADS. This includes data on: total notifiable residential and non-residential transactions (excluding leases), broken down by tax band; the ADS; and on leases and lease reviews. Annual statistics provide additional information, including an estimated breakdown of LBTT transactions and revenue by local authority area, an estimate of LBTT revenue foregone to reliefs, and information on the propensity to reclaim ADS.

The Scottish Government also considers the impact of LBTT and of potential changes to rates and/or bands as part of the annual Scottish Budget process. This process is informed by the Scottish Fiscal Commission's (SFC) analysis, reflecting its responsibility to produce official, independent economic and fiscal forecasts to accompany the Scottish Government’s Budget cycle. The SFC’s latest economic and fiscal forecasts are available here.

The Scottish Government also publishes “Ready Reckoners” alongside the Scottish Budget to show the estimated revenue impact of illustrative changes to Scottish tax policy, including for LBTT. The publication for 2025-26 is available at: Scottish Budget 2025 to 2026: Scottish tax ready reckoners - gov.scot

On your second question you asked for copies of all reports, from 1 January 2023, held by the Scottish Government on the impact/impacts of the LBTT ADS.

I have included links to relevant information below. Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you. If, however, you do not have internet access to obtain this information from the websites listed, then please contact me again and I will send you a paper copy.

During this period, the Scottish Government conducted a review of the arrangements for the LBTT ADS. The relevant documents are summarised below.

• February 2023 – the Scottish Government published a summary of responses to an initial call for evidence and views that was launched in December 2021.
• February 2023 – The Scottish Government published a consultation on proposed changes to ADS legislation.
• January 2024 – The Scottish Government published a response to the February 2023 consultation.

Subsequently, the Land and Buildings Transaction Tax (Miscellaneous Amendments) (Scotland) Order 2024 was laid before Scottish Parliament in January 2024. Following approval by the Scottish Parliament, the relevant changes came into effect from 1 April 2024.

You also asked whether the Scottish Government has done any investigatory work into the long-term impact of raising the ADS from 6% to 8% on private sector housing supply, both in the rental sector and any other classification; and for copies of any and all reports held by the Scottish Government pertaining to the impact of raising ADS from 6% to 8% on the supply of housing.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not have the information you have requested. The reasons why we don't have the information are explained below.

This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

With regard to this, the Scottish Fiscal Commission set out an assessment of the effect of this particular policy on tax revenue in its December 2024 Economic And Fiscal Forecasts at paragraphs 4.103 to 4.105, with further detail in Annex A of that publication at paragraphs A.51 to A.63, and in the Supplementary tax figures. The forecasts do not however include any disaggregated analysis of the impact of the policy on housing supply. In addition, the Scottish Government has not separately undertaken any specific analysis on the impact of the increase on private sector housing supply or on the supply of housing.

​​​​​​​However, in case helpful, Figure S4.20A of the supplementary figures published by the Scottish Fiscal Commission includes a forecast of the effect of the ADS increase on overall residential transactions. Figure S4.20 in this document also provides a pre-measures forecast related to the housing market for the period to 2029-30. This includes several fields, including residential property transactions, private new build starts and completions, and total dwelling stock.

​​​​​​​In addition, though they do not focus on private sector housing supply or housing supply in general, you may wish to note that:

• The Equality and Fairer Scotland Budget Statement published alongside Scottish Budget 2025- 26 includes some commentary on the impact of the increase in the rate of the ADS.
• The Policy Note published alongside the legislation introduced to the Scottish Parliament includes commentary on impact assessments.
• A Child Rights and Wellbeing Impact Assessment for the policy was published alongside the Order providing for the increase.​​​​​​​

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