Property Taxes


The CIOT has made a proactive submission to HMRC on the business and administrative burdens of operating the Construction Industry Scheme on landlord contributions to tenant’s works. 

Finance Secretary Derek Mackay outlined the Scottish Government’s draft budget for 2017/18 to Parliament on Thursday.  A copy of the full budget document can be found here.

The CIOT comments sent to HMRC on ER - Associated disposals and fractional interests.

The CIOT responded to the ‘Stamp duty land tax: changes to the filing and payment process’ consultation that followed the announcement at Autumn Statement 2015 that the SDLT filing and payment period will be reduced from the current 30 days to 14 days after the effective date of the transaction (to be implemented during 2017-18 with the exact date to be confirmed).

The Scottish Government set up the Barclay review group to make recommendations that seek to enhance and reform the business rates system in Scotland to better support business growth and long-term investment and reflect changing marketplaces. The group is expected to report to Scottish Government Ministers in July 2017. In order to inform their report, the group issued a call for submissions in July 2016, seeking views on how to re-design the business rates system.

Land Transaction Tax (LTT) will replace the UK Stamp Duty Land Tax (SDLT) in Wales from April 2018. The Welsh Government consulted widely on the policy design of LTT. Since consulting on proposals for LTT, changes have been introduced to SDLT and Land and Building Transaction Tax (LBTT), in particular, the higher rates charged on purchases of additional residential properties introduced by the UK and Scottish Governments from 1st April this year.

The Finance Committee of the Scottish Parliament issued a call for evidence at the end of June 2016 to assist their inquiry into the operation of Land and Buildings Transaction Tax (LBTT) in its first full year (1 April 2015 to 31 March 2016). The inquiry also considered forecast tax revenues in comparison to actual outturn figures.

We have responded to the consultation on the Reform of the Substantial Shareholding Exemption (SSE).  

In our response to the second consultation on Tax deductibility of corporate interest expense, we have said that mooted start date of April 2017 is too ambitious given the scale and complexity of the new regime. We suggested that said there is no need to rush in changes in this area because there are already a variety of rules which limit the tax deductibility of corporate interest expense, such as the Worldwide Debt Cap (WWDC) restrictions and the GAAR.

These clauses introduce new reliefs from the Annual Tax on Enveloped Dwellings (ATED). Clauses 123 and 124 introduce essentially the same reliefs for ATED that clauses 119 and 120 do for the SDLT higher rate. Clause 125 makes clear that ATED continues to apply to alternative property finance arrangements (Shari’ law compliant) in respect of properties in Scotland, even after devolution of SDLT (Scotland now has its own Land and Buildings Transactions Tax (LBTT).