SNP First Minister John Swinney has been urged to introduce a “mansion tax” on homes worth £1m or more. The Scottish Greens are demanding a super tax is slapped on the purchase of high-end houses.
Party MSP Ross Greer said: “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.”
The Greens were brutally dumped from Government this year by Humza Yousaf after three years of tension. But Swinney needs another party to cooperate on his minority Government’s Budget and the Greens have emerged as likely kingmakers.
One idea for raising more cash for public services is an overhaul of Land and Buildings Transactions Tax, the Scottish equivalent of stamp duty.
The current system ensures nothing is paid on house purchases up to £145,000 with different bands of progressive tax rates then kicking in. At the top end, 10 per cent if levied on the part of the sale between £325,001 and £750,000, with 12 per cent applying to anything over £750,000.
According to the Green plan, the 12 per cent rate would start at £650,000 and a new £15% rate would begin at £1m.
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.
“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.”
He added: “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.”
Budget talks between the Greens and the SNP Government are ongoing and tax remains a key demand for Greer’s party. They want a commitment to taxing private jets and support for higher business rates for alcohol retailers.
The mansion tax plan will be tabled as part of the discussions. Public Finance Minister Ivan McKee has led the talks for the Government.
Scottish Government Finance Secretary Shona Robison said: “The Scottish Government has taken a progressive approach to the setting of rates and bands for residential LBTT reflecting the specifics of the Scottish housing market. Our approach helps prioritise support for first-time buyers and home movers as they move through the market while also raising vital revenue to support public services.
“Decisions on the rates and bands of LBTT are taken as part of the Scottish Budget process.”
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