Swinney’s 10% tax an ‘assault on aspiration’

The Scottish Government has announced a replacement to stamp duty that will see people buying homes over £250,000 hit with a 10 per cent tax, hitting Edinburgh hardest.

In what is Scotland’s first tax-making decision in more than 300 years, the SNP has chosen to hit people seeking to buy family homes, particularly in the center of the capital, where the average house price is £262,000.

Despite labelling the move “progressive”, the change will see even modest family homes in some parts of the country subject to thousands of pounds extra in levies.

On a home worth £400,000, the tax increases significantly from the current £12,000 to £17,300.

Even people buying homes at around £325,000 will have to pay more, despite that being the average price for family properties in some parts of Scotland.

The Scottish Conservatives have warned the move will hit those aspiring to live in bigger properties in different areas.

It may also spark a surge in those seeking to sell their properties before April, when the new rate kicks in.

Transactions carried out prior to the change will see tax go to Westminster, meaning any rush would deprive the Scottish Government of cash beyond April, something that would limit future Scottish budgets.

Scottish Conservative finance spokesman Gavin Brown MSP said:

“This is an assault on aspiration.

“At a time John Swinney could have been easing the burden on hardworking families he did the exact opposite.

“He launched a raid on families who want nothing more than to buy a decent home for themselves and their children.

“This did not have to be revenue neutral.

“This is another example of the SNP lurching to the left.

“It’s not a mansion tax.

“A family buying a house worth £325,000 would be hit – homes of various types, and even some flats, will be subject to the rise.

“It’s not just going to hit the wealthy, it’s also a suburbs tax that will impact many ordinary middle class families.

“This isn’t about people in their 50s and 60s who have already found their family home and settled.

“It’s going the overwhelm people from their late 20s to early 40s, who are thinking about starting or adding to their family.

“They need to think about a suitable home to raise their children, they need to think about schooling.

“With this huge hike in tax, for thousands of those people that aspiration has become impossible because of the much heavier price tag.

“This move will also distort the market.

“There will be a rush of people looking to sell their homes before this incredible rate kicks in, and far fewer after April.

“What the SNP hasn’t realised is that stamp duty before April will go to George Osborne, and thereafter to John Swinney – he’s actually doing himself out of huge sums of cash.

“The Scottish Government has tried to devise its own mansion tax and in the process has badly overshot, hitting good, hardworking families the length and breadth of the country.”