Commission publishes costings to support Coronavirus Bill

The Scottish Fiscal Commission has today published estimates of the costs of two Scottish Government policy changes included in the Coronavirus Bill.

We have estimated the cost of a temporary extension to the period in which those who have paid the Additional Dwelling Supplement (ADS) can sell their previous main residence and qualify to claim an ADS repayment. The policy extends the window in which a repayment claim can be made from 18 months to 27 months.

The policy aims to mitigate the effect on those who are unable to qualify for repayment of ADS within the normal 18 month period because of disruption in the housing market as a result of the COVID-19 lockdown. The Commission estimates the policy will cost a total £10 million, spread over three years.

The second policy costed by the Commission is the introduction of a Coronavirus Carer’s Allowance Supplement. The Supplement of £230.10 will be paid in June alongside the existing twice-yearly Carer’s Allowance Supplement payment of £230.10. This additional payment is expected to be made to the 83,000 people already receiving Carer’s Allowance and will cost £19 million in 2020-21.

The Commission provides independent forecasts to assist the Scottish Parliament and the public in understanding the Scottish Government’s policy.

Note to Editors:

1. The Commission's Supplementary Costing: Coronavirus (Scotland)(No. 2) Bill – May 2020 is now published.

2. Our publication accompanies the Scottish Government’s Coronavirus (Scotland)(No. 2) Bill which has been introduced to the Scottish Parliament.

3. Purchasers of second properties may be liable for ADS. In some cases, owning two properties may only be a transitional arrangement while a previous residence is sold, and in these cases taxpayers may be able to claim a repayment of ADS. Before the policy change, the previous primary residence had to be sold within 18 months in order to qualify for a repayment. The new policy extends this period to 27 months. The extended period only applies to ADS payments on second property purchases made between 24 September 2018 and 24 March 2020.

4. The Commission’s analysis represents the collective view of the Scottish Fiscal Commission, comprising the Commissioners: Professor Francis Breedon, Professor Alasdair Smith, Professor David Ulph, and the Chair, Dame Susan Rice.

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