The latest statistics show the tax on buying property in Scotland has reached a new record figure, according to DJ Alexander.

The property firm’s analysis found Scottish government revenues from Land and Buildings Transaction Tax (LBTT) increased by 11.5% between September and October, rising £7.2m to a new high of £69.6m.

Between November 2021 and October 2022 revenues rose to £634.9m, representing a 16.3% increase compared to the £545.8m raised in the 12 months to October 2021. The last four months alone have brought in more than a quarter of a billion pounds (£259.3m) and are the four highest monthly totals since LBTT was introduced in April 2015, according to the analysis.

In Scotland, the 10% tax rate begins for all properties sold for £325,001 or more and each homebuyer over this threshold paid an average of £22,146. This means that last month, 1,910 homebuyers paid 84.3% of all tax (excluding additional dwelling supplement), adding up to £42.3m out of a total of £50.2m collected. For properties sold for more than £750,000, just 130 people paid £96,923 each on average, contributing £12.6m – equivalent to over a quarter (25.1%) of all tax raised.

Over a quarter (27.7%) of all revenue raised through the additional dwelling supplement (ADS) was paid by landlords, property investors, and second homeowners, contributing £19.3m during October alone. In the last three months, the ADS has raised £54.0m.

David Alexander, chief executive officer of DJ Alexander Scotland, said the figures highlighted the difference in tax paid either side of the border. “Our English counterparts pay nothing like this in tax to buy their homes and there is an increasing disparity between how much we pay in Scotland and whether this will limit growth in the country if buyers can save thousands – and sometimes tens of thousands – to invest their money south of the border,” he commented.

“Scottish first-time buyers and those buying homes worth more than £325,001 are particularly badly affected by higher LBTT charges. First-time buyers in Scotland will start to pay tax above £175,00 while in England this doesn’t start until £425,000. For all buyers in Scotland, a 2% rate starts at £145,001 to £250,000, while English buyers pay nothing at this level.”

Alexander added: “With such a large difference in property taxes, impacting people at all levels of society, there is a very real risk that Scotland becomes a place which is too expensive to buy. We want to encourage more people to live here, providing good jobs, affordable homes, and an appealing lifestyle, and high taxation is rarely an attractive proposition.”