Revenue from Land and Buildings Property Tax (LBPT) raised less than forecast in the 2015-16 tax year.
The amount raised was £201 million against the £235 million forecast. This was £69 million or 26% less than the amount collected in the last year of stamp duty in 2014-15.
LBPT replaced stamp duty in Scotland in April 2015. Under the system taxes are higher than the England and Wales for sale prices above £333,000. For more expensive properties the tax can be up to 90% higher than the old system.
There are signs that the cost of LBPT is having an impact on sale prices at the higher end. In Edinburgh in the year to February 2016 average sale prices fell by 15.4% despite an increase in volumes. The loss of tax income from lower priced properties has so far not been replaced by increases at the upper end.
