The Scottish Government is to increase the starting threshold of Land and Buildings Transaction Tax (LBTT) from £145,000 to £250,000.
If you’re a first-time buyer or home mover and purchase a residential property priced below £250,000, then you’ll have no LBTT to pay which could potentially save you thousands.
For instance, if you’re moving home and buying a house for £200,000, you would have previously paid £4,000 LBTT. But now, you could put this £4,000 towards a deposit or save it for redecorating if you wish
However, if you purchase a second home or buy-to-let property, LBTT is still applicable even if the purchase price is below £250,000.
The Scottish Finance secretary states that approximately eight out of ten house sales in Scotland would be exempt from the tax.
The change will not come into force immediately and a date is still to be confirmed, although the Scottish Finance secretary said it would be ‘as soon as possible’.
This is a positive step to stimulate the housing market and the economy, with a distinctive approach to help first-time buyers onto the property ladder.