21 Jul 2017
Revenue Scotland has released data today (21 July) showing that commercial revenue from the Scottish Land and Buildings Transaction Tax (LBTT) fell 31% in June compared to the same month in 2016. Revenues from the commercial element of the tax totalled £11.2m last month, significantly down from £16.3m last year. The figures, analysed by the Scottish Property Federation, point to the continued slowing of the commercial property market in Scotland.
In the first 6 months of 2016 (Jan-Jun) the Scottish Government raised over £100m from commercial LBTT returns, however, the same period in 2017 has seen revenue of only £85m. It was hoped that 2017 would see the commercial property market in Scotland recover after it the total value of sales contracted by 13% in 2016.
Andrew Sutherland, Vice Chair of the Scottish Property Federation and Joint Managing Director of Miller Developments said:
“A strong and healthy commercial property market not only contributes to government coffers via LBTT, but also provides Scotland with high quality jobs and economic growth.
“Today’s figures are worrying and serve to reinforce our calls for the Scottish Government to do more to support the property industry and the wider Scottish economy.
“Scotland needs to remain positive and open for business in order to secure appropriate new investment and development. Uncertainty and low economic growth prevents the commercial market in Scotland achieving its full potential.”
Notes to Editor
Revenue Scotland’s LBTT data can be viewed here > https://www.revenue.scot/about-us/publications/statistics
About Scottish Property Federation
As a membership organisation the Scottish Property Federation (SPF) is the voice of Scotland’s real estate industry. Established in 2007, SPF represents 185 organisations operating in Scotland. We include among our members: property investors including major institutional funds, developers, landlords of commercial and residential property, and professional property consultants and advisers. The SPF works closely with those who advise and decide on public policy in Scotland to ensure that they are aware of the consequences of their decisions for the property industry and wider economy.
As part of the British Property Federation we also benefit from close links with the leading UK property companies and investors in the UK as well as the BPF's contacts with Westminster.
For more information, please visit http://www.scottishpropertyfederation.org.uk or follow us on Twitter @ScotPropFed.