Scottish property tax holiday comes into force today
15 July 2020
By Daisy Stephens
The change to tax thresholds, announced last week, will apply to property transactions from 15 July.
The change to Land and Buildings Transaction Tax (LBTT), first announced by Scottish Finance Secretary Kate Forbes last week, will come into force today (Wednesday 15 July) and will last until the end of March 2021.
Whilst previously the lower threshold for LBTT was £145,000, it has been raised to £250,000 to aid the economic recovery following the coronavirus lockdown.
Above that amount the thresholds remain unchanged:
|Up to £250,000
|£250,001 to £325,000
|£325,001 to £750,000
Where the Additional Dwelling Supplement (ADS) applies, the change to the lower threshold applies as well. However the ADS will remain payable at 4% of the total purchase price.
You can read more about the rules for second homes on the Scottish government website
The move, designed to help revive the housing market after a prolonged period of being on pause, follows on from the Stamp Duty holiday in England and Northern Ireland announced by Rishi Sunak
last week. It should mean 80% of property sales in Scotland would be exempt from the tax altogether
If you’re not sure how much Land and Building Transaction Tax you’ll need to pay, our Stamp Duty Calculator
will take the recent changes into account.
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