In their 2021-2022 Budget (announced 28/01/21), the Scottish Government has confirmed the change to the residential Land and Building Transaction Tax nil rate band, introduced in summer 2020, will not be extended beyond its 31st March deadline.
The starting point for LBTT will return to £145,000 on the 1st April 2021. Other bands will return to their previous rates from the 1st April:
LBTT Rates (effective 15th July 2020 to 31st March 2021):
|
Purchase price |
LBTT rate |
|
Up to £250,000 |
0% |
|
Above £250,000 to £325,000 |
5% |
|
Above £325,000 to £750,000 |
10% |
|
Over £750,000 |
12% |
LBTT Rates (effective 1st April 2021):
|
Purchase price |
LBTT rate |
|
Up to £145,000 |
0% |
|
Above £145,000 to £250,000 |
2% |
|
Above £250,000 to £325,000 |
5% |
|
Above £325,000 to £750,000 |
10% |
|
Over £750,000 |
12% |
The Scottish Government’s first-time buyer relief will continue to be available which has the effect of raising the nil rate band to £175,000.
As ever, it is always important to take advice on how these changes can impact your mortgage options.
We are here to support you and answer any questions you may have.
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