Parliament backs Green 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 (ADS), which parliament voted for today, was secured by the party during budget negotiations with the Scottish Government.
Unlike other tax policies, which are voted on alongside the budget, changes to the ADS are made immediately after they are voted for, to prevent potential tax avoidance.
The change 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%.
The Party’s finance spokesperson, Ross Greer MSP, said:
“Housing is a human right, and there are people across Scotland who desperately need a good quality and affordable place to call home.
“The problem is made far worse by the thousands of properties that sit empty for most of the year after being bought as holiday homes, or those that are being hoarded by landlords who can outbid those trying to buy their first home.
“This increase in the Additional Dwelling Supplement will help us to tackle that imbalance. It will make it more expensive for those who already own their own homes to buy additional properties, boosting the chances of first time buyers having their offers accepted.
“At the same time, it will support our communities by raising tens of millions of pounds for public services like schools and hospitals.
“The money that it raises will overwhelmingly come from those who are already wealthy enough to buy extra properties, something that is completely 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.
“Unlike Labour, who have said they will abstain on this budget no matter what, we will continue negotiating constructively to secure a budget that delivers for people and planet.”