SFHA: Make Low Carbon Homes Exempt from Land and Buildings Transaction Tax

Published by SFHA for Scottish Federation Of Housing Associations in Housing and also in Communities, Environment

Scotland’s leading organisation representing housing associations and co-operatives has called for low carbon homes to be exempt from Land and Buildings Transaction Tax, which replaces Stamp Duty.

Commenting in advance of the Scottish Parliament Finance Committee’s session on 30th January to hear evidence about the Land and Buildings Transaction Tax Bill, the Scottish Federation of Housing Associations (SFHA) has said that the tax should not apply to zero carbon homes.

SFHA Policy Manager Susan Torrance said:

“We welcome the proposals for a tax structure which prevents house transactions above £250,000 being unfairly burdened and that retains the exemptions for charitable housing associations and other tenant controlled housing organisations from paying the tax on land transactions.

“However, we are disappointed to note the removal of an exemption to paying the tax which has existed for zero carbon homes. While we accept that this exemption was little used, we believe that we are only now seeing builders embrace the carbon agenda in house building, and every incentive should be given to encourage new building methods and technologies. An exemption for low carbon homes, with a clear definition as to which properties qualify for tax relief, would encourage buyers and builders to reduce their carbon footprints and help the Scottish Government meet its climate change targets. We are asking for this exemption to be reinstated and amended.”

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For further information, contact Kirsten Walker on 0141 567 6221 t: m: 0788 788 8348 or e: kwalker@sfha.co.uk

Visit our website at www.sfha.co.uk
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NOTES:
1. The SFHA consultation response to the Finance Committee about the Land and Buildings Transaction Tax is at http://www.sfha.co.uk/component/option,com_docman/Itemid,106/gid,2753/task,doc_download/
2. The SFHA was established in 1976 and has around 119 members providing affordable housing and wider community services in Scotland, as well as a further 200 commercial members. The SFHA is owned by its membership and exists to support the work of housing associations and co-operatives in Scotland by providing services, advice and good practice guidance.
3. The SFHA is the voice of the principal builders and managers of new affordable housing for rent in Scotland. Housing Associations own and manage around 40% of the country’s affordable rented housing stock, over a quarter of a million homes across Scotland.
4. Housing associations and co-operatives are not-for-profit bodies regulated by the Scottish Housing Regulator.
5. Follow the SFHA on Facebook - www.facebook.com/SFHA.HousingScotland?ref=hl Twitter www.twitter.com/sfha_hq