In the 2016-17 draft budget residential LBTT was expected to raise £1.795 billion between 2017-18 and 2020-21. However in yesterday’s budget this figure was revised down to just £962 million.
It comes after the SNP were warned that they had set rates too high, and that there would be a slowdown in the housing market as a consequence.
These latest figures prove that the housing market in some parts of the country has stagnated, and has led to a significant drop in tax revenues.
Scottish Conservative shadow economy secretary Dean Lockhart said:
“The SNP was well-warned by ourselves and those in the housing market that there were problems with its stamp duty plans.
“It was clear that by setting the rates this high it could lead to a slowdown, and as a result tax revenues would decline.
“The SNP totally ignored these warnings however, and these latest figures from the budget prove that the housing market in some parts of the country is starting to stagnate.
“It means that we now have a situation where house buyers and the taxpayer are losing out as a result of the SNP’s flawed LBTT plans.”