It is good news for those trying to get on to the property ladder just now as the Land and Buildings Transaction Tax (LBTT) residential threshold has increased from £145,000 to £250,000.
In Scotland, buyers must pay a lump sum tax called LBTT (equivalent to Stamp Duty in England) on properties costing over a certain amount, and the percentage tax payable increases with the price of the property. The new £250,000 threshold is now in force, meaning all buyers will pay no tax on properties purchased for up to £250,000 (until 31 March 2021).
The total amount a buyer can save under the temporary measures will depend on how much the property costs – generally, the more expensive the property, the more you’ll save up to a maximum of £2,100. It is a welcome announcement for many.
As well as raising the starting threshold for LBTT, the Scottish Government is injecting £50m into the First Home Fund, which provides first time buyers with up to £25,000 to buy a property.
The UK government has also raised the threshold at which SDLT is paid on house purchases in England and Northern Ireland helping to boost market activity.