SNP urged to back Green action on property-hoarding tax avoiders
The Scottish Government has been urged to back Green plans to crack down on property-hoarding tax avoiders which are due to be voted on today in Parliament.
The proposals, which will be presented by Scottish Green MSP Ross Greer, would end the tax break currently enjoyed by two types of companies infamous for buying up and hoarding property - Open-ended Investment Companies and Residential Property Holding Companies.
Mr Greer’s amendments to the Housing (Scotland) Bill would see both company types lose their exemption from paying Land and Buildings Transaction Tax when buying property.
Greer will also propose an additional charge for overseas buyers to crack down on property speculators based in tax havens buying up homes and properties across Scotland.
These efforts come after a report earlier this year found that the UK had become the world’s top destination for overseas property investment firms.
Mr Greer said:
“Everyone agrees that Scotland is in a housing emergency, but the Government still allows these companies to buy up properties without paying the tax that anyone else would when buying a home.
“This is one of the many factors which make it so hard for young people to get their first home in particular. They would need to pay tax, but the companies they could be bidding against do not, so can make a higher offer.
“These companies are financial leeches only interested in making a profit, even if it means buying up properties and leaving them empty for months or even years at a time.
“Scotland can be a society where everyone has a warm, safe and affordable place to call home, but that won’t happen for as long as so much of the market is tilted in favour of tax avoiders and the ultra-wealthy.
“People have had enough of the international super rich and dodgy businesses treating Scottish homes like cash cows. My proposals would force them to either pay their fair share, or make way and free up more homes for people and families who really need them.”