Land and Buildings Transaction Tax – the Scottish equivalent of stamp duty – has risen to six per cent for all additional homes.

It was previously four per cent but at the Scottish Government’s Budget yesterday it was announced: “The revised rate will apply to contracts entered into on or after 16 December 2022. For contracts entered into on or before 15 December the previous rate of 4% will apply.”

This move, along with other tax rises announced in Scotland, contradicts the SNP manifesto commitment not to change tax rates before the next election to the Scottish Parliament.

The LBTT additional homes change is predicted to raise an additional £34m per year. No other LBTT rates are changing.

The move further differentiates Scotland from the other countries of the UK which now have lower duty levels on buy to lets and holiday homes.

Other tax changes announced by Scottish finance minister John Swinney include one penny on the Higher and Top income tax rates, taking effect from April, maintaining the Starter and Basic Rate bands at their current level, and reduce the threshold at which people pay the Top Rate, from £150,000 to £125,140. 

According to the Scottish Fiscal Commission this will raise £129m. 

In addition, the Higher Rate Threshold will be maintained at its current level, increasing revenue by a further £390m when compared to inflation according to Scottish Government estimates.