The Bill allows for some buyers to no longer pay additional Land and Buildings Transaction Tax.
This is a Government bill
The Bill became an Act on 22 June 2018
This Bill was passed and is now an Act of the Scottish Parliament.
The Bill allows for some buyers to no longer pay additional Land and Buildings Transaction Tax. This would apply to a person who sells a home and their spouse buys another residential property which becomes their main home.
This Bill will allow buyers to claim that tax back if they have already paid the extra amount.
The extra amount only applies to transactions where the buyer owns more than one home. This will be if, on the day of buying a house, the buyer still owns another property.
The extra amount of Land and Building Transaction Tax (LBTT) is still charged. For example, if one spouse owns the main home and then the other spouse buys another residential property. They will count as a married couple who both own the home they currently live in and then buy another residential property together.
The joint buyers are one economic unit to stop properties moving between individuals to avoid paying tax.
The extra amount was charged if couples were both buying a home to replace a house that only one of them owned.
They had to pay the extra amount because only one name was on the title deeds. This Bill removes the tax and reimburses people who have already paid.
Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill as Introduced (165KB, pdf) posted 13 November 2017
Explanatory Notes (86KB, pdf) posted 13 November 2017
Policy Memorandum (162KB, pdf) posted 13 November 2017
Financial Memorandum (162KB, pdf) posted 13 November 2017
Statements on legislative competence (88KB, pdf) posted 13 November 2017
All Bills introduced in the Parliament must be accompanied by specific documents. For most Bills, this includes:
Explanatory Notes: this document provides an overview of what the Bill does, plus a more detailed explanation of individual provisions.
Policy Memorandum: this sets out the objectives of the Bill. It also lists any alternatives considered, details of consultations, and an assessment of the effects of the Bill on a range of areas.
Financial Memorandum: this sets out estimates of costs, savings, and any changes to revenues expected to result from the Bill.
Delegated Powers Memorandum: this is needed if a Bill gives powers to make subordinate legislation or allows Scottish Ministers to issue directions, guidance or codes of practice.
Statements on legislative competence: two short statements, one by the Presiding Officer and one by the Member introducing the Bill. “Legislative competence” means the powers the Parliament has to make law.
The Presiding Officer has decided under Rule 9.12 of Standing Orders that a financial resolution is not required for this Bill.
For each Bill, the Presiding Officer must decide if a 'Financial Resolution' is required. The main reasons a Bill would need a Financial Resolution are that:
If a Bill requires a Financial Resolution:
The Scottish Parliament's Information Centre (SPICe) prepares impartial research and analysis to assist MSPs in their examination of Bills and other parliamentary business.
Research on the Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill
The Bill was introduced on 13 November 2017
At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.
The lead committee for this Bill is the Finance and Constitution Committee.
The lead committee will usually examine the Bill through evidence sessions. This will involve contributions from individuals and organisations, known as 'witnesses', with knowledge of the subject matter. The committee might also discuss the Bill in private sessions.
A Stage 1 debate took place on 6 March 2018 to consider and decide on the general principles of the Bill.
See further details of the motion
The Bill ended Stage 1 on 6 March 2018
At Stage 2, MSPs can propose changes to a Bill. These are called 'amendments'. Any MSP can suggest amendments but only members of the Stage 2 committee can decide on them.
The Bill ended Stage 2 on 25 April 2018
At Stage 3, MSPs can propose further amendments (changes) to the Bill. These are debated and decided on in the Debating Chamber. At this stage, all MSPs can vote on them. There is then a debate on whether to pass the Bill. If the Bill is not passed, it ‘falls’ and can't become law.
Once MSPs have decided on the amendments, they debate whether to pass the Bill.
Result 109 for, 1 against, 0 abstained, 19 did not vote Vote Passed
See further details of the motion
The Bill ended Stage 3 on 17 May 2018
If the Bill is passed, it is normally sent for Royal Assent after about 4 weeks. Royal Assent is when the Bill gets formal agreement by the King and becomes an Act of the Scottish Parliament. Some Acts come into force straight after Royal Assent. Some only come into force on a later date. Sometimes different bits of the same Act come into force on different dates.