Left-wing politicians in Scotland are ramping up pressure on the monarchy, with the Scottish Greens pushing for a bold move to remove the King’s exemption from paying property taxes.
Simon Johnson, the Scottish Political Editor for The Telegraph, reports that the hard-left Scottish Greens are plotting what they call a “tax raid” on the King. Their aim is to force the monarch to pay land and buildings transaction tax (LBTT), Scotland’s equivalent of stamp duty, on property purchases.
Ross Greer, the new co-leader of the Scottish Greens, has put forward an amendment to housing legislation at Holyrood, seeking to make the King pay LBTT on “residential property transactions” in Scotland. In addition, Greer has proposed imposing an LBTT surcharge on buyers purchasing second homes in Scotland while being residents elsewhere, a measure that could impact the royal family, especially given their history of acquiring property in Scotland.
If the proposal is approved by MSPs in a vote on Tuesday, the King could face a significant tax bill for major purchases. One notable example is the £45 million deal for Dumfries House, a property that King Charles famously helped save for the nation. Green Party insiders confirmed that the amendment would have applied to the £45 million deal, which included the purchase of the A-listed property and its valuable collection of Chippendale furniture.
The proposal has sparked criticism from the right-wing, with many accusing the Greens of engaging in “gesture politics” by targeting the monarchy in an attempt to gain political points, rather than focusing on more pressing economic issues. While the plan is likely to stoke significant debate, its approval could lead to a landmark change in the royal family’s financial dealings in Scotland.
The King led a consortium of charities and the Scottish Government to make the purchase in 2007, with his own charitable foundation contributing £20m.
It has become a significant visitor attraction, and the various activities on the estate now employ more than 150 people.
LBTT is levied at 2 per cent of the purchase price between £145,001 and £250,000, rising to 5 per cent between £250,001 and £325,000.
This increases again to 10 per cent of the purchase price between £325,001 and £750,000, with 12 per cent levied on the price above that.
The purchase price thresholds are much lower than for stamp duty in England, where the top 12 per cent rate only applies above £1.5m.
Buying a property for the same cost as Dumfries House would land the purchaser with a £5.4m LBTT bill.
The Scottish Greens are ardent republicans who want to abolish the monarchy after independence. Sources said the amendment would also cover transactions such as the purchase of a cottage in Balmoral’s grounds.
Meghan Gallacher, the Scottish Tories’ shadow housing secretary, said: “Ross Greer is once again showing his true colours. It is ridiculous that, when Scotland is facing a housing emergency, he has made this a priority.
“His and the Greens’ republican views are well known, but even when faced with such a serious issue, he cannot help making such a petty attack on the King and the monarchy.
“This is gesture politics at its very worst. We should be spending our time talking about how we can deliver the homes Scotland needs, encouraging investment in the sector and ending the scandal of families being trapped in temporary accommodation.”
MSPs have been debating hundreds of amendments to the Housing (Scotland) Bill, which aims to address a dire shortage of homes north of the border.
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Mr Greer has already succeeded in getting an amendment passed that will allow local authorities to impose uncapped council tax rises on second homes.
His surcharge amendment would increase LBTT bills for property buyers “not ordinarily resident in Scotland” who do “not intend to use the dwelling as their only or main residence”.
It is understood that the intention is to cover overseas businesses as well as individuals. The amount of the surcharge would be determined by ministers later in regulations.
A Scottish Greens spokesman said: “The Tories are the party of the wealthy and the privileged few, so it is no wonder that they are so determined to keep tax breaks in place for one of the richest men in the world.
“No family should be allowed to exempt themselves from following the laws of the land and paying taxes that everyone else has to.”
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