A bid to stop property developers dodging Scotland's new land tax could cost the industry millions and deter investment, according to a property law firm.
The Scottish replacement for stamp duty land tax (SDLT) has been described as a historic first as it will allow the Scottish Parliament to both set and collect a proportion of its own revenue. But a "little-noticed provision" could result in a "significant windfall" for the Scottish Government at the expense of developers, according to Pinsent Masons.
The law firm describes the provision as "a tax on business, jobs and investment".
Its concerns relate to the removal of a century-old "tax break" called sub-sale relief, which applies when land is bought and then quickly sold on. It says that under the new rules, the tax could be applied at multiple points in a complex property project, rather than only to the ultimate purchaser.
A Government spokeswoman said: "The draft legislation is now before the Scottish Parliament's Finance Committee for detailed scrutiny. We will carefully consider all evidence submitted."
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