Changes to Stamp Duty in Scotland from 1 April 2015
21 January 2015
In 2012 it was decided to devolve the responsibility for Stamp Duty to the Scottish Parliament. The result is that Stamp Duty in Scotland will be replaced with a new tax to be known as the ‘Land and Buildings Transaction Tax’ (LBTT). This new tax will apply to land and property transactions which settle in Scotland on or after 1 April 2015. LBTT will be collected by Revenue Scotland, the body newly established by the Scottish Parliament to collect devolved taxes, instead of HMRC.
The Scottish Government had originally announced the bands and rates for LBTT, but has since reviewed them following a decision by the Chancellor of the Exchequer in December 2014 to change the Stamp Duty system in the UK. Deputy First Minister of Scotland and Cabinet Secretary for Finance, John Swinney MSP, has announced the new introductory rates for residential property transactions today. The rates announced by John Swinney are as follows:
| Purchase Price |
Tax |
| Up to £145,000 |
0% |
| From £145,000 to £250,000 |
2% |
| From £250,000 to £325,000 |
5% |
| From £325,000 to £750,000 |
10% |
| Over £750,000 |
12% |
The current Stamp Duty rates which currently apply to property transactions across the whole of the UK are as follows:
| Purchase Price |
Tax |
| Up to £125,000 |
0% |
| From £125,000 to £250,000 |
2% |
| From £250,000 to £925,000 |
5% |
| From £925,000 to £1.5 million |
10% |
| Over £1.5 million |
12% |
The new LBTT rates will be especially welcome to first time buyers and the Scottish Government have said that 9 out of 10 purchasers in Scotland will be better or no worse off under the new Scottish system.
Inksters can guide property purchasers through all aspects of the process, whether they are a first-time buyer or the owner of a property portfolio. If you are looking to buy or sell a property in Scotland, Contact Inksters and one of our solicitors will be happy to discuss your needs with you and provide you with a quote.
blog comments powered by