LBTT changes in Scotland
We are delighted to hear the Cabinet Secretary for Finance announce changes to the LBTT threshold in Scotland.
At the moment, buyers are liable for Land and Buildings Transaction Tax on all purchases of £175,000 or more. First Time Buyers already benefit from an up to £600 'Relief' on purchases between £145,000 and £175,000.
This is great news for the Housing Market in Scotland going forward with 8 out of 10 purchases being relieved of any LBTT payment. For purchases of upto £250,000 there is a saving for buyers of up to £2,100.
There is no change, at present, to the Additional Dwelling Supplement which is payable on all "additional property" purchases of £40,000 and above. This is payable at a rate of 4% of the entire purchase price.
We have no date yet for the changes to LBTT but will communicate this with our clients as and when we know more.