The introduction of a ‘mansion tax’ on the sale of the most expensive homes is one of a number of property tax changes proposed by the Scottish Greens, with the money raised being used to protect public services from further cuts.
Scottish Greens finance spokesperson Ross Greer has called for the Scottish Government to use the upcoming budget to introduce a new band of Land and Buildings Transaction Tax, set at 15% for the purchase of homes costing over £1 million.
Currently, the top rate of Land and Buildings Transaction Tax for residential properties is 12% on £750,000 and above. The Scottish Greens are proposing a new 12% rate starting at £650,000 and a 15% rate from £1 million.
Mr Greer said: “14 years of Tory cuts have left Scotland’s budget in a dire state. Sadly, the new Labour government shows every sign of going further and deeper with their own cuts to public services. We must use every tool available to us here in Scotland to protect people and planet from the damage these budget cuts would do.
“A mansion tax on the biggest and most luxurious houses is one of many ways we can raise more money to support services like the NHS while only impacting the very wealthiest people.
“There is more than enough wealth in Scotland to end child poverty tomorrow, but far too much of it is in the hands of a very small number of extremely rich people and big companies. The powers needed to tax them fairly mostly sit at Westminster rather than Holyrood, but we can use tools like Scottish property taxes to make sure the richest people in society pay a bit more when they are buying a new house.
“A mansion tax could be introduced by the SNP now. It would raise crucial funds we could use to tackle child poverty and the climate emergency.”
Mr Greer added: “The Scottish Greens have already delivered an income tax system for Scotland which raises £1.5 billion more every year for public services like our schools. If we want to protect these services though, we need to go further. That’s why we are proposing a range of options to the SNP.
“If they want Green votes to pass the government’s budget, they know that the price of our support is more funding to tackle child poverty and the climate crisis. We are being clear about where that money could be raised from.”
In 2023, the Scottish Greens delivered new powers to double the Council Tax on second homes and increased the Additional Dwelling Supplement, which is paid by those purchasing a property which is not their primary home, such as “buy to let” landlords and those buying second homes. The purpose of these changes was to raise additional funds and to discourage the purchase of holiday homes in areas where they are causing acute housing shortages.
The Party also introduced the Housing Bill which is currently working its way through Parliament. If passed, this would provide permanent rent controls and protections for tenants.
Headline image: Green MSP Ross Greer