The Scottish Government’s 2025-26 Programme for Government laid out ambitions for encouraging private capital investment in Scotland, concentrating on vital sectors like housing, and set up the Housing Investment Taskforce.

The Scottish Government also committed to introducing legislation that would safeguard the interaction between Co-Ownership Authorised Contractual Schemes (CoACS) (or transparent schemes for tax on income and chargeable gains that mean investors can claim capital allowances calculated through an operator) and the Land and Buildings Transaction Tax. In July 2025, the Scottish Government consulted on three specific issues concentrated on the interaction between investment and devolved tax legislation.

The property professionals’ body emphasised that the suggested changes for property investment funds must come alongside a broader variety of measures intended to attract investment from both institutional and individual investors.

In particular, the Scottish Government should review and remove the Additional Dwelling Supplement that increased to eight per cent in December 2024, compared to a three per cent rate when it was introduced in 2013.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “Additional taxation and the prospect of rent control areas in Scotland continue to be a huge disincentive for landlords in the private rental market.

“It is positive that the Scottish Government is looking at measures to improve the way in which the Land and Buildings Transaction tax works for investment funds, but we have consistently called for the Scottish Government to revisit any taxes that dissuade potential landlord investors, which reduces supply and in turn drives up rents.

“The Housing Investment Taskforce recommended a review of property taxes, so we await Scottish Government action to open up the debate further and ensure Scotland has a taxation system that allows for housing mobility and where landlords can invest in improvements without having to significantly raise rents and pass costs on to tenants.”

Propertymark’s full response can be read here.