In a dramatic intervention that could reshape Scotland's property landscape, Scottish Conservative MP Andrew Bowie has launched a powerful campaign to scrap the nation's controversial Additional Dwelling Supplement (ADS).
The West Aberdeenshire and Kincardine MP argues that the 6% tax on second homes and buy-to-let properties is actively harming Scotland's economic recovery and driving away much-needed investment.
The Economic Toll of Scotland's Property Levy
Speaking with conviction, Bowie highlighted how the ADS has created a "significant deterrent" for property investment across Scotland. "We're witnessing a worrying trend where potential investors are looking elsewhere in the UK where tax regimes are more favourable," he stated.
The figures speak volumes about the tax's impact. Since its introduction, the ADS has generated substantially less revenue than initially projected, suggesting it may be suppressing market activity rather than boosting government coffers.
A Two-Tier System Dividing the UK
Scotland's property tax landscape now stands in stark contrast to the rest of Britain. While England and Northern Ireland charge a 3% surcharge on additional properties, Scotland's 6% rate represents a substantial premium that critics argue puts the nation at a competitive disadvantage.
Bowie emphasised this disparity, noting that "Scotland cannot afford to be the least attractive place in the UK to invest in property, especially during a period of economic uncertainty."
Broader Implications for Scotland's Future
The debate extends beyond mere property transactions. Proponents of abolition argue that removing the ADS would stimulate construction, support the rental market, and ultimately make Scotland more attractive to professionals and businesses considering relocation.
As Bowie powerfully concluded, "This isn't just about property—it's about sending a clear message that Scotland is open for business, investment, and growth."
The Scottish Government now faces mounting pressure to reconsider a tax that many believe is doing more harm than good to the nation's economic prospects.
