Budget: Scottish Greens secure action to tax second homes
The Scottish Greens have secured an increase to the tax paid when buying second and holiday homes, raising over £30 million for public services and helping to tackle the housing crisis.
The increase of the Additional Dwelling Supplement was secured by the party’s finance spokesperson, Ross Greer MSP, during budget negotiations with the Scottish Government.
Unlike other tax policies, which are voted on alongside the budget, changes to the Additional Dwelling Supplement are made immediately after they are announced, to prevent potential tax avoidance.
The change, which has been agreed by the Scottish Parliament’s Finance Committee this morning, will see the rate increase from 6% to 8%, raising an additional £32 million a year for public services according to the independent Scottish Fiscal Commission. This comes two years after the Scottish Greens secured the first increase in ADS, from 4% to 6%.
Mr Greer said:
“Housing is a human right, but there are people across Scotland who desperately need a good quality and affordable place to call home and just cannot get it. Thousands of properties sit empty for most of the year after being bought as holiday homes, or are hoarded by landlords who can outbid those trying to buy their first home.
“This increase in the Additional Dwelling Supplement will help to tackle that imbalance, making it more expensive for those who already own their own home to buy additional properties, boosting the chances of first time buyers having their offers accepted. It will also raise tens of millions of pounds for public services like schools and hospitals.
“The money raised will come overwhelmingly from those who are already wealthy enough to buy extra properties, something totally outwith the reach of most people.
“This is just one of the changes the Scottish Greens have already secured through budget negotiations, alongside additional investment in climate action and tackling child poverty. We will continue negotiating constructively with the Scottish Government to secure a budget that works for people and planet.”