New Scottish taxes unveiled in draft budget

Scottish Finance Secretary John Swinney has set out the draft 2015-16 budget in Holyrood with a promise to make the country more prosperous and equal.

Mr Swinney announced the rates of two new devolved taxes, the Land and Buildings Transaction Tax, which will replace Stamp Duty, and the Scottish Landfill Tax.

He said: "After a hiatus of 308 years, and in a moment of splendid coincidence we return to the issue of the taxation of property transactions.

"From April 2015 Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax will replace stamp duty and UK-wide landfill tax in Scotland."

Citing economist Adam Smith's 1776 maxim that taxes should be proportionate to the ability to pay, Mr Swinney confirmed the established of a Scottish Fiscal Commission to independently scrutinise the Scottish government receipts and forecasts.

In a move designed to help first-time buyers, the threshold for LBTT is set at £135,000, up from the stamp duty threshold of £125,000.

Mr Swinney also announced a new 12% tax on properties costing more than £1m.