The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
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Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
You are aware that, as the percentage is increased, people will be increasingly inventive when it comes to ways to avoid what is quite a hefty bill.
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
Thank you.
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
I have a couple of quick questions. Any of us who have had casework on behalf of our constituents will know that, when something has gone wrong in relation to property developers and you check out the developer, you may find that many limited companies and other corporate constructs have been created around the business. How alert are you to that practice in the property development industry? If directors are not to be made liable for recovery of tax, how alert are you to the evolving nature of those corporate structures? Unless you recover the moneys at the point of the certificate of completion, those who are unscrupulous might find ways around the system.
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
Minister, do you anticipate that the one-year delay to the introduction of the levy will have an impact on the ability of the industry to meet that target?
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
So, that money was spent in-year, and you will have to use future revenues to make up for that.
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
It is not just the concept that they are opposed to; they are saying that the practicality of it is significant. Mr Marra has referred to the principle of it, which is that some of the construction operators have had no interface with cladding at all and are saying that they would have to pay for the sins of others in the industry. Would you accept that there is a flaw in the design of the proposed levy?
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
The principal tax that you collect at the moment is land and buildings transaction tax.
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
Some estate agents say that they are now advising customers early on in the process, even before viewing, about the burden that LBTT and potentially ADS will put on the transaction. However, when you speak to some conveyancing solicitors, there is still a sense that they are only as good as the information that the client gives them.
You are saying that you think that your compliance costs and your recoveries are quite good, where you have anticipated something. However, if, for example, someone is buying what appears to be their first property in the UK and happens to own a bolthole in Slovenia, what capacity do you have to find out whether ADS should apply to that? I assume that you will not trawl the land registry in Slovenia.
10:30Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
A lot of the devil in the detail will be in the secondary legislation. Presumably, you do not want the penalty regime to be disproportionate, but you want to ensure that it is a disincentive to anybody to misbehave. How far are you down the road of constructing what the penalties would be to ensure that they are proportionate and that the industry has some foresight of them?
Finance and Public Administration Committee
Meeting date: 18 November 2025
Craig Hoy
I presume that failure to register would be one of the things that would attract a penalty.